EX-99 4 ex99-5.txt EXHIBIT 99.5 ================================================================================ Roebling Financial Corp, Inc. Second Step Conversion Valuation Appraisal August 2, 2004 ================================================================================ -------------------------------------------------------------------------------- Table of Contents Roebling Financial Corp, Inc. Roebling, New Jersey
Introduction 1 --------------------------------------------------------------------------------------- 1. Overview and Financial Analysis 4 --------------------------------------------------------------------------------------- GENERAL OVERVIEW 4 HISTORY 5 STRATEGIC DIRECTION 6 BALANCE SHEET TRENDS 7 LOAN PORTFOLIO 9 SECURITIES 12 INVESTMENTS AND MORTGAGE-BACKED SECURITIES 13 ASSET QUALITY 14 FUNDING COMPOSITION 17 ASSET/LIABILITY MANAGEMENT 18 NET WORTH AND CAPITAL 19 INCOME AND EXPENSE TRENDS 20 SUBSIDIARIES 25 LEGAL PROCEEDINGS 25 2. Market Area Analysis 26 --------------------------------------------------------------------------------------- MARKET AREA DEMOGRAPHICS 26 MARKET AREA DEPOSIT CHARACTERISTICS 28 3. Comparisons with Publicly Traded Thrifts 29 --------------------------------------------------------------------------------------- INTRODUCTION 29 SELECTION CRITERIA 29 OVERVIEW OF THE COMPARABLES 32 4. Market Value Determination 35 --------------------------------------------------------------------------------------- COMPARABLE GROUP ADJUSTMENTS 35 FINANCIAL CONDITION 36 BALANCE SHEET GROWTH 40 EARNINGS QUALITY, PREDICTABILITY AND GROWTH 42 MARKET AREA 47 CASH DIVIDENDS 49 LIQUIDITY OF THE ISSUE 51 RECENT REGULATORY MATTERS 52 MANAGEMENT 53 SUBSCRIPTION INTEREST 54 VALUATION ADJUSTMENTS 56 6. Valuation 57 --------------------------------------------------------------------------------------- DISCUSSION OF WEIGHT GIVEN TO VALUATION MULTIPLES 57 EVALUATION OF THE EXCHANGE RATIO 59 OFFERING VALUE IN RELATION TO COMPARABLES 60 COMPRARISON TO ILLIQUID FULLY CONVERTED THRIFTS 62 COMPARISON TO OTHER SELECTED THRIFT INSTITUTIONS 64 VALUATION CONCLUSION 65 ---------------------------------------------------------------------------------------
List of Figures Roebling Financial Corp, Inc. Roebling, New Jersey
Figure 1 - Current Branch List 4 Figure 2 - Asset and Retained Earnings Chart 7 Figure 3 - Key Balance Sheet Data 8 Figure 4 - Key Ratios 8 Figure 5 - Net Loans Receivable Chart 9 Figure 6 - Loan Mix as of March 31, 2004 Chart 10 Figure 7 - Loan Mix 11 Figure 8 - Securities Chart 12 Figure 9 - Investment Mix 13 Figure 10 - Non-Performing Assets Chart 14 Figure 11 - Non-Performing Assets 15 Figure 12 - Allowance for Possible Loan and Lease Losses Chart 16 Figure 13 - Deposit and Borrowing Trend Chart 17 Figure 14 - Net Portfolio Value 18 Figure 15 - Regulatory Capital Adequacy 19 Figure 16 - Net Income Chart 20 Figure 17 - Average Yields and Costs 21 Figure 18 - Spread and Margin Chart 22 Figure 19 - Income Statement Trends 23 Figure 20 - Profitability Trend Chart 24 Figure 21 - Population Demographics 26 Figure 22 - Household Characteristics 27 Figure 23 - Roebling Market Area 28 Figure 24 - New Egypt Market Area 28 Figure 25 - Comparable Group 31 Figure 26 - Key Financial Indicators 34 Figure 27 - Key Balance Sheet Data 36 Figure 28 - Capital Data 37 Figure 29 - Asset Quality Table 38 Figure 30 - Balance Sheet Growth Data 40 Figure 31 - Net Income Chart 43 Figure 32 - Profitability Data 44 Figure 33 - Income Statement Data 45 Figure 34 - Market Area Data 47 Figure 35 - Dividend Data 49 Figure 36 - Market Capitalization Data 51 Figure 37 - Second Step Conversions 54 Figure 38 - Recent Standard Conversion Performance 55 Figure 39 - Value Range - Full Offering 60 Figure 40 - Value Range Pricing Multiples 60 Figure 41 - Comparable Pricing Multiples to the Bank's Pro Forma Midpoint 61 Figure 42 - Comparable Pricing Multiples to the Bank's Pro Forma Super Maximum 61 Figure 43 - Illiquid Comparable Pricing Multiples to the Bank's Pro Form Midpoint 63 FIgure 44 - Illiquid Comparable Pricing Multiples to the Bank's Pro Forma Super Maximum 63 Figure 45 - Comparison to Other Selected Thrift Institutions 64 ------------------------------------------------------------------------------------------
List of Exhibits Roebling Financial Corp, Inc. Roebling, New Jersey Exhibit -------------- 1. Firm Overview 2. Consolidated Balance Sheets 3. Consolidated Income Statements 4. Reconciliation of TFR Statement of Operations to Consolidated Statements of Income 5. Consolidated Statements of Cash Flows 6. Consolidated Statements of Stockholder's Equity 7. Selected Data on Comparable Group 8. Industry Multiples 9. Second Step Conversion Performance 10. Recent Standard Conversion Performance 11. Appraisal Pro Forma March 31, 2004 - 12 Months Data 12. Offering Circular Pro Forma September 30, 2003 - 12 Months Data 13. Offering Circular Stub Pro Forma March 31, 2004 - 6 Months Data 14. Selected Data on Illiquid Comparable Group -------------------------------------------------------------------------------- Conversion Valuation Appraisal Report Page: 1 ================================================================================ Introduction This report represents FinPro, Inc.'s ("FinPro") independent appraisal of the estimated pro forma market value of the common stock (the "Common Stock") in connection with the conversion and reorganization of Roebling Bank from the two-tier mutual holding company structure to the stock holding company structure (the "Conversion"). Roebling Bank is currently a wholly owned subsidiary of Roebling Financial Corp, Inc., a federal corporation (the "Mid-Tier" or on a consolidated basis the "Bank"), which is the partially owned subsidiary of Roebling Financial Corp., MHC (the "MHC"), both of which will be merged out of existence, and Roebling Bank will become a wholly owned subsidiary of the Roebling Financial Corp, Inc. (the "Company"). The Bank is headquartered in Roebling, New Jersey and on March 31, 2004 had $87.5 million in assets, $79.0 million in deposits and $7.5 million in stockholders' equity. The Bank is a federally chartered savings association whose principal regulator is the Office of Thrift Supervision ("OTS"). All of the Bank's deposit accounts, up to the regulatory limits, are insured by the Savings Association Insurance Fund ("SAIF") of the Federal Deposit Insurance Corporation ("FDIC"). As of March 31, 2003, the Bank maintained three branch offices and one loan center located in New Jersey. This appraisal has been prepared in accordance with Regulation 563b.7 and with the "Guidelines for Appraisal Reports for the Valuation of Savings and Loan Banks Converting from Mutual to Stock Form of Organization" of the OTS which have been adopted in practice by the FDIC, including the most recent revisions as of October 21, 1994, and applicable regulatory interpretations thereof. In the course of preparing our report, we reviewed the unaudited financial statements of the Bank's and the Mid-Tier's (hereinafter, collectively referred to as the "Bank") operations for the six month period ended March 31, 2004 and the Bank's audited financial statements for the twelve month period ended September 30, 2003. We have conducted due diligence analysis on the Bank and held due diligence related discussions with the Bank's management and board, Fontanella and Babitts, Certified Public Accountants (the Bank's independent audit firm), Malizia Spidi & Fisch, P.C. (the Bank's special counsel), Keefe, Bruyette & Woods, Inc. (the Bank's marketing advisor). The valuation parameters set forth in the appraisal were predicated on these discussions but all conclusions related to the valuation were reached and made independent of such discussions. Conversion Valuation Appraisal Report Page: 2 ================================================================================ The Company is offering a minimum of 630,878 shares and a maximum of 853,532 shares of common stock (the "Conversion Stock") at $10.00 per share to persons with priority subscription rights in a subscription offering and to other members of the public in a community offering (the "Offerings"). These shares represent the MHC's ownership interest in the Mid-Tier Holding Company based on an independent appraisal, which may be increased by up to 15% without resolicitation. At the supermaximum, the company would offer 981,551 shares. The table below sets forth information regarding the sale of Conversion Stock in the Offerings. The Company will issue a minimum of 537,872 shares, a maximum of 727,718 shares and a supermaximum of 836,887 shares of common stock (the "Exchange Shares") to the shareholders of the Mid-Tier Holding Company (other than the MHC) in exchange for their Mid-Tier Holding Company common stock (the "Exchange"). The Company will not pay or receive any cash in the Exchange, except that cash will be paid in lieu of fractional shares. The number of Exchange Shares to be issued is dependent upon the amount of Conversion Stock sold, with an exchange ratio designed to provide the Mid-Tier Holding Company's shareholders (other than the MHC) with approximately the same percentage ownership interest in the Company that they have in the Mid-Tier holding Company. The sum of the Conversion Stock and the Exchange Shares represent the total amount of Common Stock to be issued in the Conversion, which sum is a minimum of 1,168,750 shares and a maximum of 1,581,250 shares. If the independent appraisal were increased by 15%, the adjusted maximum amount of Conversion Stock, Exchange Shares and total shares would be increased to 981,551 shares 836,887 shares and 1,818,438 shares, respectively. The Mid-Tier Holding Company common stock is currently quoted on the OTC Bulletin Board under the symbol "ROEB." The Company has applied to the NASDAQ Stock Market under the same symbol upon completion of the Conversion. Conversion Valuation Appraisal Report Page: 3 ================================================================================ In preparing our valuation, we relied upon and assumed the accuracy and completeness of financial and other information provided to us by the Bank and its independent accountants. We did not independently verify the financial statements and other information provided by the Bank and its independent accountants, nor did we independently value any of the Bank's assets or liabilities. This estimated valuation considers the Bank only as a going concern and should not be considered as an indication of its liquidation value. Where appropriate, we considered information based upon other publicly available sources, which we believe to be reliable; however, we cannot guarantee the accuracy or completeness of such information. We visited the Bank's primary market area and reviewed the market area economic condition. We also reviewed the competitive environment in which the Bank operates and its relative strengths and weaknesses. We compared the Bank's performance with selected publicly traded thrift institutions. We reviewed conditions in the securities markets in general and in the market for savings institutions in particular. Our analysis included a review of the estimated effects of the Reorganization on the Bank, operation and expected financial performance as they related to the Bank's estimated pro forma value. Our valuation is not intended, and must not be construed, to be a recommendation of any kind as the advisability of purchasing shares of Common Stock in the Conversion and Reorganization. Moreover, because such valuation is necessarily based upon estimates and projections of a number of matters, all of which are subject to change from time to time, no assurance can be given that persons who purchase shares of Common Stock in the Conversion and Reorganization will thereafter be able to sell such shares at prices related to the foregoing valuation of the pro forma market value thereof. FinPro is not a seller of securities within the meaning of any federal or state securities laws and any report prepared by FinPro shall not be used as an offer or solicitation with respect to the purchase or sale of any securities. The estimated valuation herein will be updated as appropriate. These updates will consider, among other factors, any developments or changes in the Bank's financial condition, operating performance, management policies and procedures, and current conditions in the securities market for thrift institution common stock. Should any such developments or changes, in our opinion, be material to the estimated pro forma market value of the Bank, appropriate adjustments to the estimated pro forma market value will be made. The reasons for any such adjustments will be explained at that time. Conversion Valuation Appraisal Report Page: 4 ================================================================================ 1. Overview and Financial Analysis ------------------------------------ GENERAL OVERVIEW ------------------------------------ As of March 31, 2004, the Bank had $87.5 million in total assets, $79.0 million in deposits, $58.8 million in net loans and $7.5 million in equity. The following table shows the Bank's branch network as of March 31, 2004. FIGURE 1 - CURRENT BRANCH LIST
-------------------------------------------------------------------------------------------------------------- Net Book Value at Branch Deposits at Office Location Address Owned/Leased March 31, 2004 March 31, 2004 -------------------------------------------------------------------------------------------------------------- (in thousands) -------------------------------------------------------------------------------------------------------------- Route 130 South and Main Office Delaware Avenue Owned $904 $43,236 Roebling, NJ -------------------------------------------------------------------------------------------------------------- 34 Main Street Village Office Roebling, NJ Owned $85 $7,689 -------------------------------------------------------------------------------------------------------------- 8 Jacobstown Road New Egypt Office Roebling, NJ Owned $665 $28,050 -------------------------------------------------------------------------------------------------------------- 761 Delaware Avenue Loan Center Roebling, NJ Leased $36 na --------------------------------------------------------------------------------------------------------------
Conversion Valuation Appraisal Report Page: 5 ================================================================================ ------------------------------------ HISTORY ------------------------------------ Roebling Bank was founded in 1922 to service the home mortgage needs of the Village of Roebling. Over the next 80 years, the Bank's mission expanded to provide a full range of consumer and commercial banking services. Roebling Bank has been a stock savings bank since 1997. Roebling Bank operates two Banking Facilities plus a Loan Center in Roebling as well as a Banking Center in New Egypt. Conversion Valuation Appraisal Report Page: 6 ================================================================================ ------------------------------------ STRATEGIC DIRECTION ------------------------------------ On January 31, 2000, Roebling Bank completed its reorganization and formed the Mid-Tier as a stock holding company of Roebling Bank. The former holders of the common stock of Roebling Bank became stockholders of the Mid-Tier and each outstanding share of common stock of the Roebling Bank was converted into a share of common stock of the Mid-Tier on a one-for-one basis. The Mid-Tier has outstanding 425,500 shares of common stock, of which 195,960 are owned by public stockholders and the remainder of which are held by the mutual holding company. The Company's business is conducted primarily through its wholly-owned subsidiary, Roebling Bank. References to the Mid-Tier refer to the consolidated entity which includes the main operating company, Roebling Bank, unless the context indicates otherwise. The Roebling Bank, a federally chartered stock savings bank, has three retail offices, two located in Roebling and one located in New Egypt, New Jersey. In addition, a loan center office is located in Roebling. From these locations, Roebling Bank primarily serves the towns of Roebling, Florence Township and New Egypt. Roebling Bank's secondary market includes Burlington City, Cream Ridge, Wrightstown, Bordentown City and Springfield, Mansfield, Bordentown, Plumsted, New Hanover and North Hanover Townships. Competition The competition for deposits comes from other insured financial institutions such as commercial banks, thrift institutions (including savings banks), credit unions and multi-state regional banks in the Bank's market areas. Competition for funds also includes a number of insurance products sold by local agents and investment products such as mutual funds and other securities sold by local and regional brokers. The Bank maintains and attracts customers by offering competitive interest rates and a high level of personal service. Conversion Valuation Appraisal Report Page: 7 ================================================================================ ------------------------------------ BALANCE SHEET TRENDS ------------------------------------ From September 30, 2001 to March 31, 2004, the Bank's balance sheet has increased from $73.1 million to $87.5 million, or $14.4 million. Equity has also increased from $6.0 million at September 30, 2001 to $7.5 million at March 31, 2004. The equity to assets ratio is currently 8.59%. FIGURE 2 - ASSET AND RETAINED EARNINGS CHART [BAR GRAPH SHOWING ASSETS AND STOCKHOLERS EQUITY IN THOUSANDS AT END OF LAST THREE FISCAL YEARS AND MOST RECENT QUARTER WITH FOLLOWING DATA POINTS: Date Assets Equity ---- ------ ------ 9/30/01 $73,132 $5,975 9/30/02 82,217 6,732 9/30/03 87,744 7,180 3/31/04 87,485 7,513 Source: Offering Prospectus Conversion Valuation Appraisal Report Page: 8 ================================================================================ The following tables set forth certain information concerning the financial position of the Bank along with selected ratios at the dates indicated. FIGURE 3 - KEY BALANCE SHEET DATA ------------------------------------------------------------------------------ Selected Financial Highlights At March 31, At September 30, ----------------------------------------------- $ in thousands 2004 2003 2003 2002 2001 ------------------------------------------------------------------------------ (Unaudited) Assets $ 87,485 $ 83,980 $ 87,744 $ 82,217 $ 73,132 Loans recievable, net 58,772 51,628 55,362 45,731 43,096 Securities: Available for sale 20,787 22,142 23,884 23,143 12,217 Held to maturity 1,251 2,170 1,802 3,080 6,273 Deposits 78,976 76,008 78,408 74,361 66,200 Total stockholders' equity $ 7,513 $ 6,980 $ 7,180 $ 6,732 $ 5,975 ------------------------------------------------------------------------------ Source: Offering Prospectus FIGURE 4 - KEY RATIOS
------------------------------------------------------------------------------------------------------------------------------------ Selected Ratios and Other Data: At March 31, At September 30, --------------------------------------------------------- 2004 2003 2003 2002 2001 ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------------------------------------------ Performance Ratios: Return on average assets 0.54% 0.62% 0.65% 0.76% 0.62% Return on average equity 6.52 7.60 7.85 9.16 6.66 Net interest rate spread 3.74 3.60 3.62 3.81 3.72 Net interest margin 3.98 3.96 3.95 4.23 4.38 Average interest-earning assets to average interest-bearing liabilities 121.86 122.46 122.64 121.37 122.03 Efficency ratio (operating expenses divided by the sum of net interest income and other income) 77.05 72.96 72.48 70.55 75.38 Asset Quality Ratios: Nonperforming loans to total loans, net at period end 0.20% 0.88% 0.14% 0.00% 0.33% Nonperforming assets to total assets at period end 0.14 0.54 0.09 0.00 0.24 Net chargeoffs to average loans outstanding 0.00 0.00 (0.01) 0.00 0.01 Allowance for loan losses to total loans at period end 0.83 0.86 0.85 0.89 0.73 Allowance for loan losses to non-performing loans at period end 4.07x x 5.91x NM 2.07x Capital Ratios: Average equity to average assets 8.31% 7.86% 8.31% 8.27% 9.32% Equity to assets at period end 8.59 8.31 8.18 8.19 8.17 Full-service offices: 3 3 3 3 3 ------------------------------------------------------------------------------------------------------------------------------------
Source: Offering Prospectus Conversion Valuation Appraisal Report Page: 9 ================================================================================ ------------------------------------ LOAN PORTFOLIO ------------------------------------ The Bank's loan portfolio has increased by $15.7 million or 36.37% from September 30, 2001 to March 31, 2004. The Bank's net loan to asset ratio was 67.18% at March 31, 2004. FIGURE 5 - NET LOANS RECEIVABLE CHART [BAR GRAPH SHOWING LOANS RECEIVABLE, NET IN THOUSANDS AND RATIO OF NET LOANS TO ASSETS AT END OF LAST THREE FISCAL YEARS AND MOST RECENT QUARTER WITH FOLLOWING DATA POINTS: Net Loans Net Loans Date Receivable to Assets ---- ---------- --------- 9/01 $43,096 58.93% 9/02 45,731 55.62 9/03 55,362 63.09 3/04 58,772 67.18 Source: Offering Prospectus Conversion Valuation Appraisal Report Page: 10 ================================================================================ The majority of the Bank's loan portfolio is composed of residential 1-4 family loans. However, the Bank does have significant home equity loans and commercial mortgage portfolios. FIGURE 6 - LOAN MIX AS OF MARCH 31, 2004 CHART [PIE CHART WITH FOLLOWING DATA] One to four family mortgage 53.7% Multi-family Mortgage 1.2% Construction & land 1.3% Commercial Mortgage 15.2% Home Equity 25.3% Commercial Business 2.7% Other Consumer 0.7% Source: Offering Prospectus Conversion Valuation Appraisal Report Page: 11 ================================================================================ Since September 30, 2001, the Bank's loan mix has shifted toward commercial mortgages. As a percentage of the loan portfolio, commercial mortgages increased from 8.0% at September 30, 2001 to 15.2% at March 31, 2004. Home equity loans have declined as a percentage of the portfolio from 35.9% to 25.3% over the same period. FIGURE 7 - LOAN MIX
----------------------------------------------------------------------------------------------------------------------------------- At March 31, At September 30, ------------------------------------------------------------------------------------------ 2004 2003 2002 2001 ------------------------------------------------------------------------------------------ Amount Percent Amount Percent Amount Percent Amount Percent of Total of Total of Total of Total ------------------------------------------------------------------------------------------ (Dollars in thousands) ----------------------------------------------------------------------------------------------------------------------------------- Real estate: One to four family $ 31,815 53.72% $ 32,470 58.18% $ 23,768 51.58% $ 19,852 45.61% Multi family 708 1.19% 190 0.34% 92 0.20% - 0.00% Construction and land 741 1.25% 497 0.89% 698 1.51% 1,948 4.47% Commercial real estate 9,013 15.22% 5,970 10.70% 3,665 7.95% 3,470 7.97% ------------------------------------------------------------------------------------------ Total real estate loans 42,277 71.38% 39,127 70.11% 28,223 61.24% 25,270 58.05% ------------------------------------------------------------------------------------------ Consumer and commercial loans: Home equity 14,966 25.27% 14,524 26.02% 15,533 33.71% 15,604 35.85% Commercial 1,574 2.66% 1,711 3.07% 1,731 3.76% 1,879 4.32% Other consumer 411 0.69% 449 0.80% 595 1.29% 775 1.78% ------------------------------------------------------------------------------------------ Total consumer and commercial loans 16,951 28.62% 16,684 29.89% 17,859 38.76% 18,258 41.95% ------------------------------------------------------------------------------------------ Total loans 59,228 100.00% 55,811 100.00% 46,082 100.00% 43,528 100.00% ----------- ----------- ----------- ----------- Less: Loans in process - - - 172 Net deferred loan origination costs (33) (24) (58) (55) Allowance for loan losses 489 473 409 315 ----------- ----------- ----------- ----------- Total loans, net $ 58,772 $ 55,362 $ 45,731 $ 43,096 -----------------------------------------------------------------------------------------------------------------------------------
Source: Offering Prospectus Conversion Valuation Appraisal Report Page: 12 ================================================================================ ------------------------------------ SECURITIES ------------------------------------ The Bank's security portfolio increased between September 30, 2001 and September 30, 2002 but has decreased since that point. The portfolio mix has shifted toward investment securities and away from MBS. FIGURE 8 - SECURITIES CHART Sep-01 Sep-02 Sep-03 Mar-04 ------ ------ ------ ------ MBS $ 9,448 $14,030 $ 9,216 $ 7,458 Investments 9,041 12,193 16,470 14,580 ------- ------- ------- ------- Total $18,489 $26,223 $25,686 $22,038 ======= ======= ======= ======= Note: Securities classified as available-for-sale are shown at fair value while securities held to maturity are shown at amortized cost. Source: Offering Prospectus Conversion Valuation Appraisal Report Page: 13 ================================================================================ ------------------------------------------ INVESTMENTS AND MORTGAGE-BACKED SECURITIES ------------------------------------------ The Bank has shifted the classification of the investment portfolio from held-to-maturity to available-for-sale. The Bank has shift the portfolio mix toward US government agencies and away from MBS. FIGURE 9 - INVESTMENT MIX
-------------------------------------------------------------------------------------- At September 30, At March 31, -------------------------------- 2004 2003 2002 2001 --------- --------- ---------- --------- (In thousands) Investment securities held-to-maturity: U.S. government and agency securities $ 206 $ 260 $ 546 $ 1,142 Corporate and municipal debt instruments 216 526 552 1,312 Mortgage-backed securities (1) 829 1,016 1,982 3,819 --------- --------- ---------- --------- Total investment securities held-to-maturity 1,251 1,802 3,080 6,273 --------- --------- ---------- --------- Investment securities available for sale: U.S. government and agency securities 14,128 15,656 11,071 6,555 Fannie Mae stock 30 28 24 32 Mortgage-backed securities 6,629 8,200 12,048 5,629 --------- --------- ---------- --------- Total investment securities available for sake 20,787 23,884 23,143 12,216 --------- --------- ---------- --------- Total investment securities $ 22,038 $ 25,686 $ 26,223 $ 18,489 --------------------------------------------------------------------------------------
(1) Includes CMOs Source: Offering Prospectus Conversion Valuation Appraisal Report Page: 14 ================================================================================ ------------------------------------ ASSET QUALITY ------------------------------------ The Bank's loans 90 days past due were $120 thousand at March 31, 2004. As a percentage of assets, nonperforming assets decreased from 0.21% at September 30, 2001, to 0.14%, at March 31, 2004. FIGURE 10 - NON-PERFORMING ASSETS CHART ($ in thousands) Sep-01 Sep-02 Sep-03 Mar-04 ------ ------ ------ ------ REO and other NPAs $ 26 $ 0 $ 0 $ 0 Nonperforming loans $ 152 $ 0 $ 80 $ 120 NPAs to Total Assets 0.24% 0.00% 0.00% 0.00% Source: Offering Prospectus Conversion Valuation Appraisal Report Page: 15 ================================================================================ The Bank's nonperforming loan to loans ratio was 0.20% at March 31, 2004. Additionally, nonperforming assets as a percentage of total assets was 0.14% at the same date. FIGURE 11 - NON-PERFORMING ASSETS -------------------------------------------------------------------------------- At March 31. 2004 ($ in thousands) -------------------------------------------------------------------------------- Non-performing loans $ 120 Real estate owned and other NPA - -------------------------------------------------------------------------------- Total non-performing assets $ 120 Non-performing loans as a percentage of loans 0.20% Non-performing assets as a percentage of assets 0.14% -------------------------------------------------------------------------------- Source: Offering Prospectus Conversion Valuation Appraisal Report Page: 16 ================================================================================ The Bank's allowance for loan and lease losses has increased from $315 thousand at September 30, 2001, to $489 thousand at March 31, 2004. The ALLL to loans receivable ratio has trended downward since September 30, 2002. At March 31, 2004 the Bank's ALLL to loans ratio was 0.83%. FIGURE 12 - ALLOWANCE FOR POSSIBLE LOAN AND LEASE LOSSES CHART [BAR GRAPH SHOWING ALLOWANCE IN THOUSANDS AND RATIO OF ALLOWANCE TO TOTAL LOANS WITH FOLLOWING DATA POINTS] Allowance to Date Allowance Total Loans ---- --------- ----------- 9/01 $315 0.73% 9/02 409 0.89 9/03 473 0.85 3/04 489 0.83 Source: Offering Prospectus Conversion Valuation Appraisal Report Page: 17 ================================================================================ ------------------------------------ FUNDING COMPOSITION ------------------------------------ Overall, deposits have increased from $66.2 million at September 30, 2001 to $79.0 million at March 31, 2004, or 19.30%. The Bank did not have any outstanding borrowings at March 31, 2004. FIGURE 13 - DEPOSIT AND BORROWING TREND CHART ($ in thousands) [BAR GRAPH SHOWING FOLLOWING DATA] Sep-01 Sep-02 Sep-03 Mar-04 ------ ------ ------ ------ Total Deposits $66,200 $74,361 $78,408 $78,976 Borrowed Funds $ 0 $ 0 $ 1,200 $ 0 Source: Offering Prospectus Conversion Valuation Appraisal Report Page: 18 ================================================================================ ------------------------------------ ASSET/LIABILITY MANAGEMENT ------------------------------------ The following chart illustrates the Bank's net portfolio value ("NPV") ratio at March 31, 2004, as calculated by the OTS. At +200 basis points the Bank's net portfolio value ratio is 10.73% and the sensitivity measure is 131 bps. The capital infusion should improve the Bank's interest rate risk position. FIGURE 14 - NET PORTFOLIO VALUE --------------------------------------------------- At March 31, 2004 --------------------------------------------------- Changes in Rate Net Portfolio Value Ratio Change --------------------------------------------------- 300 9.74% -230 bps. 200 10.73% -131 bps. 100 11.52% -54 bps. 0 12.03% -100 11.80% -24 bps. Source: Offering Circular Conversion Valuation Appraisal Report Page: 19 ================================================================================ ------------------------------------ NET WORTH AND CAPITAL ------------------------------------ At March 31, 2004, the Bank had capital well in excess of the minimum requirements for all regulatory capital requirements. The table below only accounts for the capital held at Roebling Bank and does not account for the capital at the mid-tier and the MHC. FIGURE 15 - REGULATORY CAPITAL ADEQUACY -------------------------------------------------------------------------------- Actual at March 31, 2004 ------------------------------------- Regulatory Capital Position Percentage of Amount Assets -------------------------------------------------------------------------------- GAAP Capital $ 7,363 8.59% ------- Tier 1 (Core) Capital Capital Level $ 7,187 8.24% Requirement 3,489 4.00% ------- Excess $ 3,698 4.24% Total Risk-Based Capital: Capital Level $ 7,668 14.81% Requirement 4,142 8.00% ------- Excess $ 3,526 6.81% -------------------------------------------------------------------------------- Source: Offering Prospectus Conversion Valuation Appraisal Report Page: 20 ================================================================================ ------------------------------------ INCOME AND EXPENSE TRENDS ------------------------------------ The Bank's annualized net income for the six months ended March 31, 2004, of $478 thousand, was below the net income for the twelve month period ended September 30, 2003 of $559 thousand. FIGURE 16 - NET INCOME CHART ($ in thousands) Sep-01 Sep-02 Sep-03 Mar-04 ------ ------ ------ ------ Net Income $ 387 $ 582 $ 559 $ 478 Note: The Mar-04 figure represents the annualized six month period ended March 31, 2004. Source: Offering Prospectus Conversion Valuation Appraisal Report Page: 21 ================================================================================ Interest rate spread and margin increased for the six month period ended March 31, 2004 when compared to the same six month period in 2003. The increase was attributable to cost of interest bearing liabilities declining more than yield on earning assets declined. FIGURE 17 - AVERAGE YIELDS AND COSTS
----------------------------------------------------------------------------------------------------------------------- For the Six Months Ended March 31, ---------------------------------------------------------------------- 2004 2003 ---------------------------------------------------------------------- Average Average Average Average Balance Interest Yield/Cost Balance Interest Yield/Cost ----------------------------------------------------------------------------------------------------------------------- ($ in thousands) Interest-earning assets: Loans receivable $ 57,479 $ 1,712 5.96% $ 48,868 $ 1,605 6.62% Investment securities 23,490 378 3.22% 26,216 526 4.01% Other interest-earning assets 2,654 33 2.47% 4,498 64 2.87% ---------------------------------------------------------------------- Total interest-earning assets 83,623 $ 2,123 5.08% 79,582 $ 2,195 5.55% ----------- ---------- Non-interest-earning assets 4,724 4,309 ----------- ------------ Total assets $ 88,347 $ 88,891 Interest-bearing liabilities: Interest-bearing checking $ 11,681 $ 15 0.26% $ 10,572 $ 29 0.55% Savings accounts 22,535 75 0.67% 19,416 120 1.24% Money market accounts 6,785 26 0.77% 6,350 48 1.50% Certificates of deposit 27,416 342 2.49% 28,639 435 3.05% Borrowings 195 1 1.03% 11 - - ---------------------------------------------------------------------- Total interest-bearing liabilities 68,612 $ 459 1.34% 64,988 $ 632 1.95% ----------- ---------- Non-interest-bearing liabilities 12,390 11,919 ----------- ------------ Total liabilities 81,002 76,907 Stockholders' equity 7,345 6,984 ----------- ------------ Total liabilities and stockholders' equity $ 88,347 $ 83,891 Net interest income $ 1,664 $ 1,563 Interest rate spread 3.74% 3.60% Net interest margin 3.98% 3.96% Ratio of average interest-earning assets to average interest-bearing liabilities 121.86% 122.46% -----------------------------------------------------------------------------------------------------------------------
Source: Offering Prospectus Conversion Valuation Appraisal Report Page: 22 ================================================================================ Both spread and margin increased from the year ended September 30, 2003 to the six months ended March 31, 2004. Net interest margin trended downward from the twelve months ended September 30, 2001 to the twelve months ended September 30, 2003. FIGURE 18 - SPREAD AND MARGIN CHART [LINE GRAPH SHOWING FOLLOWING DATA] Sep-01 Sep-02 Sep-03 Mar-04 ------ ------ ------ ------ Spread 3.72% 3.81% 3.62% 3.74% Margin 4.38% 4.23% 3.95% 3.98% Source: Offering Prospectus Conversion Valuation Appraisal Report Page: 23 ================================================================================ The Bank's net income for the six month period ended March 31, 2004 was $239 thousand which was a $22 thousand decrease from the $261 thousand net income for the six month period ended March 31, 2003. This corresponds to a reduction in fully diluted EPS to $0.56 from $0.62 for the respective time periods. The decrease in net income was primarily the result of an increase in non-interest expense of $143 thousand that more than offset a $121 thousand increase in net interest income after provision for loan losses. FIGURE 19 - INCOME STATEMENT TRENDS
-------------------------------------------------------------------------------------------------------------------------------- For the Six Months For the Fiscal Year Ended Ended March 31, September 30, -------------------------------------------------------------------------- Selected Operating Data: 2004 2003 2003 2002 2001 -------------------------------------------------------------------------------------------------------------------------------- (Unaudited) ($ in thousands) -------------------------------------------------------------------------- Interest income $2,123 $2,195 $4,380 $4,494 $4,304 Interest expense 459 632 1,175 1,419 1,745 ------ ------ ------ ------ ------ Net interest income 1,664 1,563 3,205 3,075 2,559 Provision for loan losses 16 36 60 96 91 ------ ------ ------ ------ ------ Net interest income after provision for loan losses 1,648 1,527 3,145 2,979 2,468 Noninterest income 227 238 501 440 402 Noninterest expense 1,457 1,314 2,686 2,481 2,232 ------ ------ ------ ------ ------ Income before tax expense 418 451 960 938 638 Income tax expense 179 190 401 356 251 ------ ------ ------ ------ ------ Net income $239 $261 $559 $582 $387 ====== ====== ====== ====== ====== Earnings per share - basic $0.57 $0.63 $1.34 $1.40 $0.93 ====== ====== ====== ====== ====== Earnings per share - diluted $0.56 $0.62 $1.33 $1.39 $0.93 ====== ====== ====== ====== ====== Book value per share $17.66 $16.40 $16.88 $15.82 $14.04 ====== ====== ====== ====== ====== --------------------------------------------------------------------------------------------------------------------------------
Source: Offering Prospectus Conversion Valuation Appraisal Report Page: 24 ================================================================================ The Bank's ROAA and ROAE were 0.54% and 6.52%, respectively, for the six months ended March 31, 2004. Profitability ratios have trended downward since the year ended September 30, 2002. FIGURE 20 - PROFITABILITY TREND CHART [LINE GRAPH SHOWING FOLLOWING DATA] Sep-01 Sep-02 Sep-03 Mar-04 ------ ------ ------ ------ ROAA 0.62% 0.76% 0.65% 0.54% ROAE 6.66% 9.16% 7.85% 6.52% Source: Offering Prospectus Conversion Valuation Appraisal Report Page: 25 ================================================================================ ------------------------------------ SUBSIDIARIES ------------------------------------ The Mid-Tier has no subsidiaries other than Roebling Bank. Roebling Bank does not have any subsidiaries. ------------------------------------ LEGAL PROCEEDINGS ------------------------------------ The Bank and its subsidiaries, from time to time, are a party to routine litigation, which arises in the normal course of business, such as claims to enforce liens, condemnation proceedings on properties in which Roebling Bank holds security interests, claims involving the making and servicing of real property loans, and other issues incident to the business of Roebling Bank. There were no lawsuits pending or known to be contemplated against us at March 31, 2004 that would have a material effect on the Bank's operations or income. Conversion Valuation Appraisal Report Page: 26 ================================================================================ 2. Market Area Analysis ------------------------------------ MARKET AREA DEMOGRAPHICS ------------------------------------ The following tables summarize the demographics for the Bank's markets. The markets were defined as the zip code in which the Bank operates a branch. FIGURE 21 - POPULATION DEMOGRAPHICS
_______________________________________________________________________________________________________________ 08554 Roebling, NJ 08533 New Egypt, NJ Burlington INDEX INDEX County, NJ ___________________________________________________________________________________________________________________________ LAND AREA (miles) 1.17 17.22 804.57 POPULATION 1990 CENSUS 3,763.00 4,718.00 305,066.00 2000 CENSUS 3,671.00 5,474.00 423,394.00 2002 ESTIMATE 3,713.00 5,623.00 429.273.00 2007 PROJECTION 3,822.00 6,011.00 443,858.00 GROWTH 1990 TO 2002 -1.33% 19.18% 8.66% PROJECTED GROWTH 2002 to 2007 2.94% 6.90% 3.40% POPULATION DENSITY 2002 (persons/sq mile) 3,170.8 5.94 326.6 0.61 533.5 POPULATION BY SEX - 2002 EST 3,713 5,623 429,273 MALE 46.46% 0.94 50.12% 1.01 49.40% FEMALE 53.54% 1.06 49.88% 0.99 50.60% MARITAL STATUS (POP AGE 15*) 2,895.00 4,293.00 339,904 MALE, NEVER MARRIED 11.61% 0.77 14.40% 0.96 15.05% FEMALE, NEVER MARRIED 11.92% 1.05 10.20% 0.90 11.40% TOTAL MARRIED 57.69% 1.00 61.19% 1.06 57.64% MALE, PREVIOUSLY MARRIED 5.49% 1.10 4.78% 0.95 5.01% FEMALE, PREVIOUSLY MARRIED 13.30% 1.22 9.43% 0.87 10.90% POPULATION BY AGE - 2002 EST 3,713 5,623 429,273 UNDER 4 YEARS 6.44% 1.02 6.53% 1.03 6.34% 5 TO 9 YEARS 8.08% 1.16 8.43% 1.21 6.97% 10 T0 14 YEARS 7.51% 1.00 8.70% 1.16 7.51% 15 TO 19 YEARS 6.76% 1.07 7.06% 1.11 6.34% 20 TO 24 YEARS 4.74% 0.85 5.35% 0.98 5.48% 25 TO 34 YEARS 13.90% 1.05 11.79% 0.89 13.18% 35 TO 44 YEARS 17.59% 1.01 20.86% 1.20 17.33% 45 TO 54 YEARS 14.06% 0.96 14.49% 0.99 14.71% 55 TO 59 YEARS 5.68% 1.02 5.05% 0.90 5.59% 60 TO 64 YEARS 3.47% 0.84 3.41% 0.83 4.13% 65 TO 69 YEARS 2.59% 0.75 2.90% 0.84 3.46% 70 TO 74 YEARS 2.75% 0.86 1.90% 0.60 3.20% 78 TO 79 YEARS 2.50% 0.95 1.62% 0.62 2.63% 80 TO 84 YEARS 2.64% 1.50 1.10% 0.83 1.76% 85 + YEARS 1.29% 0.94 0.80% 0.58 1.38% MEDIAN AGE 36.46 0.97 36.03 0.96 37.41 EDUCATION ATTAINMENT (POP AGE 25+) 2,468 3,595 289,165 ELEMENTARY 12.20% 2.13 8.65% 1.51 5.72% SOME HIGH SCHOOL 15.36% 1.29 14.27% 1.20 11.92% HIGH SCHOOL GRADUATE 36.10% 1.10 46.34% 1.41 32.76% SOME COLLEGE 17.34% 0.93 15.52% 0.83 18.59% COLLEGE ASSOCIATES DEGREE 4.29% 0.68 4.01% 0.63 6.34% COLLEGE BACHELORS DEGREE 11.55% 0.68 9.12% 0.53 17.08% COLLEGE GRADUATE DEGREE 3.16% 0.42 2.09% 0.28 7.58% POPULATION BY RACE - 2002 EST 3,713 5,623 429,273 WHITE 88.07% 1.16 91.16% 1.20 75.66% BLACK 6.49% 0.43 2.15% 0.14 15.05% INDIAN 0.11% 0.60 0.16% 0.89 0.18% ASIAN 1.67% 0.60 0.91% 0.32 2.80% PACIFIC ISLANDER 0.00% 0.00 0.02% 0.69 0.30% OTHER 0.03% 0.13 0.02% 0.09 0.21% MULTIPLE RACE 1.05% 0.61 1.17% 0.68 1.73% HISPANIC 2.59% 0.60 4.41% 1.02 4.34%
Source: Claritas Conversion Valuation Appraisal Report Page: 27 ================================================================================ FIGURE 22 - HOUSEHOLD CHARACTERISTICS
_______________________________________________________________________________________________________________ 08554 Roebling, NJ 08533 New Egypt, NJ Burlington INDEX INDEX County, NJ ___________________________________________________________________________________________________________________________ HOUSEHOLDS 1990 CENSUS 1,390.00 1,644.00 136,554.00 2000 CENSUS 1,403.00 1,901.00 154,371.00 2002 ESTIMATE 1,432.00 1,946.00 157,818.00 2007 PROJECTION 1,507.00 2,058.00 166,638.00 GROWTH 1990 TO 2002 2.07% 2.37% 2.23% PROJECTED GROWTH 2002 to 2007 5.24% 5.76% 5.59% HOUSEHOLD SIZE 1,432 1,946 157,818 HHs WITH 1 PERSON 25.70% 1.09 17.06% 0.75 23,48% HHs WITH 2 PERSONS 31.01% 0.97 29.80% 0.93 32.08% HHS WITH 3 PERSONS 17.04% 0.96 20.40% 1.15 17.74% HHs WITH 4 PERSONS 15.80% 0.97 19.53% 1.20 16.30% HHs WITH 5 PERSONS 7.12% 1.00 9.25% 1.30 7.10% HHs WITH 6 PERSONS 2.37% 1.04 2.52% 1.10 2.29% HHs WITH 7+ PERSONS 0.91% 0.91 1.44% 1.44 1.00% AVG PERSONS PER HH 2000 2.68 1.05 2.48 0.97 2.56 AVG PERSONS PER HH 2002 EST 2.59 0.95 2.89 1.06 2.72 AVG PERSONS PER HH 2007 PROJ 2.54 0.95 2.92 1.10 2.66 CHANGE 2000 TO 2002 -0.09 0.41 0.16 HOUSEHOLDS BY TYPE - 2002 EST FAMILY HOUSEHOLDS 69.76% 0.97 77.44% 1.08 71.79% NON-FAMILY HOUSEHOLDS 30.24% 1.07 22.56% 0.80 28.21% PERSONS IN GROUP QUARTERS 0.00% 0.00 0.09% 0.03 3.31% HOUSEHOLDS BY INCOME - 2002 EST 1,432 1,946 157,188 UNDER $15,000 9.43% 1.59 6.12% 1.03 5.94% $15,000 TO $25,000 11.03% 1.49 8.48% 1.14 7.43% $25,000 TO $35,000 8.66% 0.95 9.82% 1.07 9.15% $35,000 TO $50,000 15.43% 1.03 16.29% 1.09 14.93% $50,000 TO $75,000 27.51% 1.14 25.28% 1.05 24.08% $75,000 TO $100,000 12.36% 0.75 18.04% 1.10 16.42% $100,000 TO $150,000 12.43% 0.86 13.00% 0.90 14.41% $150,000 TO $250,000 2.65% 0.45 2.67% 0.45 5.85% $250,000 TO $500,000 0.35% 0.29 0.31% 0.25 1.22% $500,000 OR MORE 0.14% 0.25 0.00% 0.00 0.56% AVERAGE HOUSEHOLD INCOME - 2002 EST 62,920 0.82 68,085 0.89 76,879 MEDIAN HOUSEHOLD INCOME - 2002 EST 54,949 0.87 59,197 0.94 63,022 PER CAPITA HOUSEHOLD INCOME - 2002 EST 24,264 0.83 23,381 0.80 29,244 INCOME BELOW POVERTY LEVEL 3.49% 1.38 2.00% 0.79 2.54% HOUSEHOLDS BY NUMBER OF VEHICLES 1,432 1,946 157,818 NO VEHICLES 8.80% 1.87 4.52% 0.96 4.71% 1 VEHICLE 37.29% 1.20 24.05% 0.78 30.99% 2 VEHICLES 37.71% 0.84 47.53% 1.06 44.68% 3 VEHICLES 11.94% 0.86 14.85% 1.06 13.95% 4 VEHICLES 3.77% 0.86 6.37% 1.46 4.37% 5+ VEHICLES 0.49% 0.38 2.67% 2.06 1.30%
Source: Claritas Conversion Valuation Appraisal Report Page: 28 ================================================================================ ------------------------------------ MARKET AREA DEPOSIT CHARACTERISTICS ------------------------------------ The following tables summarize the deposit characteristics of each of the Bank's markets. The Bank's markets were defined by management. FIGURE 23 - ROEBLING MARKET AREA
08554 Roebling, NJ: Market Share by Institution Type Total Mkt Share $ Growth % Growth Avg Branch Branch Perf Institution 2003 2003 1999-2003 1999-2003 2003 Count Index -------------------------------------------------------------------------------------------------------- Total $80,292 100.00% $7,264 9.95% $26,764 3 1.00 ======================================================================================================== Commercial Banks $29,311 36.51% ($5,526) -15.86% $29,311 1 1.10 Savings Banks $0 0.00% $0 0.00% $0 0 0.00 Thrifts $50,981 63.49% $12,790 33.49% $25,491 2 0.95 Credit Unions $0 0.00% $0 0.00% $0 0 0.00
08554 Roebling, NJ: Market Share by Institution Total Mkt Share $ Growth % Growth Avg Branch Branch Perf Institution 2003 2003 1999-2003 1999-2003 2003 Count Index -------------------------------------------------------------------------------------------------------- Total $80,292 100.00% $7,264 9.95% $26,764 3 1.00 ======================================================================================================== Roebling Bank (MHC) $50,981 63.49% $12,790 33.49% $25,491 1 0.95 Fleet National Bank $29,311 36.51% ($5,526) -15.86% $29,311 1 1.10
Source: SNL Securities, FinPro Calculation FIGURE 24 - NEW EGYPT MARKET AREA
08533 New Egypt, NJ: Market Share by Institution Type Total Mkt Share $ Growth % Growth Avg Branch Branch Perf Institution 2003 2003 1999-2003 1999-2003 2003 Count Index -------------------------------------------------------------------------------------------------------- Total $87,996 100.00% ($9,086) -9.36% $43,998 2 1.00 ======================================================================================================== Commercial Banks $59,776 67.93% ($26,492) -30.71% $59,776 1 1.36 Savings Banks $0 0.00% $0 0.00% $0 0 0.00 Thrifts $28,220 32.07% $17,406 160.96% $28,220 1 0.64 Credit Unions $0 0.00% $0 0.00% $0 0 0.00
08533 New Egypt, NJ: Market Share by Institution Total Mkt Share $ Growth % Growth Avg Branch Branch Perf Institution 2003 2003 1999-2003 1999-2003 2003 Count Index -------------------------------------------------------------------------------------------------------- Total $87,996 100.00% $(9,086) -9.36% $43,998 2 1.00 ======================================================================================================== Roebling Bank (MHC) $28,220 32.07% $17,406 160.96% $28,220 1 0.64 Fleet National Bank $59,776 67.93% ($26,492) -30.71% $59,776 1 1.36
Source: SNL Securities, FinPro Calculation Conversion Valuation Appraisal Report Page: 29 ================================================================================ 3. Comparisons with Publicly Traded Thrifts ------------------------------------ INTRODUCTION ------------------------------------ This section presents an analysis of the Bank's operations against a selected group ("Comparable Group") of publicly traded thrifts. The Comparable Group was selected based upon the similarity of characteristics to the Bank. The Comparable Group multiples provide the basis for the valuation of the Bank. Factors that influence the Bank's value such as balance sheet structure and size, profitability, income and expense trends, capital levels, credit risk, and recent operating results can be measured against the Comparable Group. The Comparable Group's current market pricing, coupled with the appropriate adjustments for differences between the Bank and the Comparable Group, will then be utilized as the basis for the pro forma valuation of the Bank's to-be-issued common stock. There are two primary areas of concern to appraisers today. The first is the lack of overall publicly traded thrifts available for comparative purposes with only 185 total fully converted thrifts left in the entire country. The second is a byproduct of the first. There are simply not enough good institutions left to allow for highly accurate geographic and size comparisons. As such, Comparable Groups are becoming more difficult to establish and the result will be more premiums and discounts that need to be applied. ------------------------------------ SELECTION CRITERIA ------------------------------------ The goal of the selection criteria process is to find those institutions with characteristics that most closely match those of the Bank. In an ideal world, all of the Comparable Group would contain the exact characteristics of the Bank. However, none of the Comparables selected will be exact clones of the Bank. As stated above, establishing Comparable Groups that very closely match a given institution is becoming more and more difficult. This is particularly true for this institution. Based upon our experience, FinPro has determined that fully converted thrifts trade differently than MHCs trade due to the unique ownership structure of an MHC, namely that all MHCs contain some level of minority discount. As such, all MHCs were eliminated as potential Comparables. Conversion Valuation Appraisal Report Page: 30 ================================================================================ As of the date of this appraisal, there were a total of 185 fully converted thrifts that traded on the NYSE, NASDAQ or AMEX. FinPro limited the Comparable Group to institutions whose common stock is listed on a major exchange, since these companies trade regularly. FinPro believes that thrifts that trade over-the-counter or as pink sheets contain liquidity discounts along with wider bid-ask ranges relative to liquidly traded thrifts. This may skew the trading value and make trading multiples less reliable as an indicator of value. If these institutions are utilized, a liquidity discount must be calculated and used. Due to the differences in regional pricing, FinPro would like to utilize institutions located in the Mid Atlantic Region in the Comparable Group. There are currently 39 fully converted thrifts in the Mid Atlantic Region. Of these 39, none are less than or equal to $150 million in size and as such none are of similar size to the Bank, which has only $87.5 million in assets. FinPro eliminated the less than $50 million in assets screen. Five merger targets were excluded from the group as the pricing of merger targets is skewed by the merger consideration value. FinPro then excluded all institutions with assets greater than $500 million. This resulted in a total of six institutions, which is not a sufficient number. FinPro decided to include fully converted thrifts in the New England Region since pricing trends for the two regions have historically been similar. This resulted in 11 institutions which were considered acceptable. As such, FinPro utilized the following screens to select the Comparable Group: [GRAPHIC OF COMPUTER SCREEN OMITTED] Conversion Valuation Appraisal Report Page: 31 ================================================================================ These screens resulted in 11 institutions. As such, the Comparable Group selected includes: FIGURE 25 - COMPARABLE GROUP
Corporate -------------------------------------------------------- Number of IPO Ticker Short Name Exchange City State Offices Date ------------------------------------------------------------------------------------------------------------------------- Comparable Thrift Data ALFC Atlantic Liberty Financial Corp NASDAQ Brooklyn NY 2 10/23/2002 CEBK Central Bancorp, Inc. NASDAQ Somerville MA 10 10/24/1986 ESBK Elmira Savings Bank, FSB NASDAQ Elmira NY 6 03/01/1985 HIFS Hingham Institution for Savings NASDAQ Hingham MA 7 12/20/1988 LARL Laurel Capital Group, Inc. NASDAQ Allison Park PA 8 02/20/1987 LSBX LSB Corporation NASDAQ North Andover MA 6 05/02/1986 MFLR Mayflower Co-operative Bank NASDAQ Middleboro MA 5 12/23/1987 NBN Northeast Bancorp AMEX Auburn ME 12 08/19/1987 PHSB PHSB Financial Corp. NASDAQ Beaver Falls PA 10 07/10/1997 WSB Washington Savings Bank, F.S.B. (The) AMEX Bowie MD 5 08/03/1988 WVFC WVS Financial Corp. NASDAQ Pittsburgh PA 6 11/29/1993 ----------------------------------------------------------------------------------------------------------------------------------- ROEB Roebling Financial Corp, Inc. (MHC) OTC BB Roebling NJ 3 10/02/1997
All 11 of the Comparables have been public for more than one year. FinPro would ordinarily exclude institutions that have recently converted, as the earnings of newly converted institutions do not reflect a full year's benefit from the reinvestment of proceeds, and thus the price/earnings multiples and return on equity measures for these institutions tend to be skewed upward and downward respectively. Conversion Valuation Appraisal Report Page: 32 ================================================================================ ------------------------------------ OVERVIEW OF THE COMPARABLES ------------------------------------ The members of the Comparable Group were reviewed against the Bank to ensure comparability based upon the following criteria: 1. Asset size 2. Profitability 3. Capital Level 4. Balance Sheet Mix 5. Operating Strategy 6. Date of conversion 1. Asset Size The Comparable Group should have a similar asset size to the Bank, however, this is not possible due to the Bank's small asset base and the requirement of being listed on a major exchange. The Comparable Group ranged in size from $182.7 million to $526.1 million in total assets with a median of $400.2 million. The Bank's asset size was $87.5 million as of March 31, 2004 and is projected to be $93.2 million on a pro forma basis at the midpoint of the estimated valuation range. 2. Profitability The Comparable Group had a median ROAA of 0.82% and a median ROAE of 9.71% for the most recent quarter. The Comparable Group profitability measures had a dispersion about the mean for the ROAA measure ranging from a low of 0.36% to a high of 2.42% while the ROAE measure ranged from a low of 4.22% to a high of 23.58%. The Bank had a ROAA of 0.54% and ROAE of 6.52% for the six months ended March 31, 2004. On a pro forma basis, the ROAA is projected at 0.59% and the ROAE is projected at 4.17% at the midpoint of the range. 3. Capital Level The median equity to assets ratio for the Comparable Group was 8.39% with a high of 14.47% and a low of 7.26%. At March 31, 2004, the Bank had an equity to assets ratio of 8.59%. On a pro forma basis, at the midpoint, the Bank would have an equity to assets ratio of 14.18%. Conversion Valuation Appraisal Report Page: 33 ================================================================================ 4. Balance Sheet Mix At March 31, 2004, the Bank had a net loan to asset ratio of 67.18%. The median loan to asset ratio for the Comparables was 61.39%, ranging from a low of 17.89% to a high of 89.29%. On the liability side, the Bank's deposit to asset ratio was 90.27% at March 31, 2004 while the Comparable median was 68.06%, ranging from 38.56% to 82.26%. Additionally, the Comparable median borrowings to assets ratio was 23.64% with a range of 53.09% to 7.17%. The Bank did not have any borrowings at March 31, 2004. 5. Operating strategy An institution's operating characteristics are important because they determine future performance. They also affect expected rates of return and investor's general perception of the quality, risk and attractiveness of a given company. Specific operating characteristics include profitability, balance sheet growth, asset quality, capitalization, and non-financial factors such as management strategies and lines of business. 6. Date of conversion Recent conversions, those completed on or after March 31, 2003, were excluded since the earnings of a newly converted institution do not reflect a full year's benefits of reinvestment of conversion proceeds. Additionally, new issues tend to trade at a discount to the market averages. Conversion Valuation Appraisal Report Page: 34 ================================================================================ All Comparable Group data presented in Figure 26 is from SNL Securities. All data for the Bank is from the offering circular. FIGURE 26 - KEY FINANCIAL INDICATORS
----------------------------------------------------------------------------------------- The Bank at or for Comparable Group the 6 Months Ended Median Most Recent 3/31/04 Quarter ---------------------------------------------------------------------------------------- BALANCE SHEET DATA ---------------------------------------------------------------------------------------- Gross Loans to Deposits 74.99 77.82 ---------------------------------------------------------------------------------------- Total Net Loans to Assets 67.18 61.39 ---------------------------------------------------------------------------------------- Securities to Assets 25.19 32.94 ---------------------------------------------------------------------------------------- Deposits to Assets 90.27 68.98 ---------------------------------------------------------------------------------------- Borrowed Funds to Assets - 16.13 ---------------------------------------------------------------------------------------- BALANCE SHEET GROWTH ---------------------------------------------------------------------------------------- Asset Growth Rate (0.59) 2.01 ---------------------------------------------------------------------------------------- Loan Growth Rate 12.32 8.27 ---------------------------------------------------------------------------------------- Deposit Growth Rate 1.45 1.69 ---------------------------------------------------------------------------------------- CAPITAL ---------------------------------------------------------------------------------------- Equity to Assets 8.59 8.86 ---------------------------------------------------------------------------------------- Tangible Equity to Tangible Assets 8.59 8.52 ---------------------------------------------------------------------------------------- Intangible Assets to Equity - - ---------------------------------------------------------------------------------------- Regulatory Core Capital to Assets 8.24 8.49 ---------------------------------------------------------------------------------------- Equity + Reserves to Assets 9.15 9.58 ---------------------------------------------------------------------------------------- ASSET QUALITY ---------------------------------------------------------------------------------------- Non-Performing Loans to Loans 0.20 0.07 ---------------------------------------------------------------------------------------- Reserves to Non-Performing Loans 407.50 171.99 ---------------------------------------------------------------------------------------- Non-Performing Assets to Assets 0.14 0.08 ---------------------------------------------------------------------------------------- Non-Performing Assets to Equity 1.60 0.54 ---------------------------------------------------------------------------------------- Reserves to Loans 0.83 1.06 ---------------------------------------------------------------------------------------- Reserves to Non-Performing Assets + 90 Days Del. 407.50 186.73 ---------------------------------------------------------------------------------------- PROFITABILITY ---------------------------------------------------------------------------------------- Return on Average Assets 0.54 0.78 ---------------------------------------------------------------------------------------- Return on Average Equity 6.52 7.27 ---------------------------------------------------------------------------------------- INCOME STATEMENT ---------------------------------------------------------------------------------------- Yield on Average Earning Assets 5.08 5.28 ---------------------------------------------------------------------------------------- Cost of Average Interest Bearing Liabilities 1.34 2.10 ---------------------------------------------------------------------------------------- Net Interest Income to Average Assets 3.74 3.29 ---------------------------------------------------------------------------------------- Net Interest Margin 3.98 3.30 ---------------------------------------------------------------------------------------- Noninterest Income to Average Assets 0.51 0.29 ---------------------------------------------------------------------------------------- Noninterest Expense to Average Assets 3.30 2.65 ---------------------------------------------------------------------------------------- Efficiency Ratio 77.05 68.26 ---------------------------------------------------------------------------------------- Overhead Ratio 73.92 65.63 ----------------------------------------------------------------------------------------
Source: The Bank Offering Circular, FinPro calculations and SNL Securities Note: All of the Bank data is at or for the six months ended March 31, 2004. Note: All of the Comparable data is for the most recent quarter. Conversion Valuation Appraisal Report Page: 35 ================================================================================ 4. Market Value Determination ------------------------------------ COMPARABLE GROUP ADJUSTMENTS ------------------------------------ The estimated pro forma market value of the Bank, along with certain adjustments to its value relative to market values for the Comparable Group are delineated in this section. The adjustments are made from potential investors' viewpoint and are adjustments necessary when comparing the Bank to the Comparable Group. Potential investors include depositors holding subscription rights and unrelated parties who may purchase stock in the community offering and who are assumed to be aware of all relevant and necessary facts as they pertain to the value of the Bank relative to other publicly traded thrift institutions and relative to alternative investment opportunities. There are numerous criteria on which the market value adjustments are based. The major criteria utilized for purposes of this report include: Adjustments Relative to the Comparable Group: --------------------------------------------- o Financial Condition o Balance Sheet Growth o Earnings Quality, Predictability and Growth o Market Area o Cash Dividends o Liquidity of the Issue o Recent Regulatory Matters Adjustments for Other Factors: ------------------------------ o Management o Subscription Interest To ascertain the market value of the Bank, the median trading multiple values for the Comparable Group are utilized as the starting point. Adjustments, up or down, to the Comparable Group median multiple values are made based on the comparison of the Bank to the Comparable Group. Conversion Valuation Appraisal Report Page: 36 ================================================================================ ------------------------------------ FINANCIAL CONDITION ------------------------------------ The financial condition of an institution is an important market value determinant, as the investment community considers such factors as bank liquidity, capitalization, asset composition, funding mix and intangible levels in assessing the attractiveness of investing in the common stock of a thrift. The following tables summarize the key financial elements of the Bank measured against the Comparable Group. FIGURE 27 - KEY BALANCE SHEET DATA
Key Financial Data for the Most Recent Quarter ----------------------------------------------------------------------------- Total Loans/ Loans/ Securities Deposits/ Borrowings/ Assets Deposits Assets Assets Assets Assets Ticker Short Name ($000) (%) (%) (%) (%) (%) ----------------------------------------------------------------------------------------------------------------------------------- Comparable Thrift Data ALFC Atlantic Liberty Financial Corp 182,709 107.15 64.56 NA 60.25 23.64 CEBK Central Bancorp, Inc. 507,883 112.95 69.87 NA 61.86 28.01 ESBK Elmira Savings Bank, FSB 294,707 74.63 61.39 32.94 82.26 8.83 HIFS Hingham Institution for Savings 526,060 117.45 73.94 16.70 62.96 28.52 LARL Laurel Capital Group, Inc. 301,251 68.81 56.58 25.37 82.22 7.17 LSBX LSB Corporation 476,274 73.22 44.54 51.89 60.83 26.31 MFLR Mayflower Co-operative Bank 214,178 68.48 55.98 38.03 81.74 9.58 NBN Northeast Bancorp 518,029 115.10 78.34 14.11 68.06 23.80 PHSB PHSB Financial Corp. 323,003 60.23 41.20 54.19 68.42 16.76 WSB Washington Savings Bank, F.S.B. (The) 471,344 120.22 89.20 2.39 74.20 15.04 WVFC WVS Financial Corp. 400,180 46.40 17.89 80.31 38.56 53.09 ----------------------------------------------------------------------------------------------------------------------------------- Average 383,238 87.69 59.41 35.10 67.40 21.89 Median 400,180 74.63 61.39 32.94 68.06 23.64 Maximum 526,060 120.22 89.20 80.31 82.26 53.09 Minimum 182,709 46.40 17.89 2.39 38.56 7.17 ROEB Roebling Financial Corp, Inc. (MHC) 87,485 75.00 67.18 25.19 90.27 - Variance to the Comparable Median (312,695) 0.37 5.79 (7.75) 22.21 (23.64) ==================================================================================================================================
Sources: SNL and Offering Circular Data, FinPro Computations Asset Composition - The Bank's net loan to asset ratio of 67.18% is ------------------ above the Comparable Group median of 61.39%. Funding Mix - The Bank is funded primarily through deposits, 90.27% of ----------- assets. The Comparable Group has a deposits to assets ratio of 68.06% and a borrowings to assets ratio of 23.64%. The Bank does not have any borrowings. Liquidity - The liquidity of the Bank and the Comparable Group appear --------- adequate. Conversion Valuation Appraisal Report Page: 37 ================================================================================ FIGURE 28 - CAPITAL DATA
Capital for the Most Recent Quarter ------------------------------------------------------------ Tangible Intangible Core Capital/ Equity + Equity/ Equity/ Assets/ Tangible Reserves/ Assets Tang Assets Equity Assets Assets Ticker Short Name (%) (%) (%) (%) (%) ------------------------------------------------------------------------------------------------------------------------ Comparable Thrift Data ALFC Atlantic Liberty Financial Corp 14.47 14.47 - NA 14.80 CEBK Central Bancorp, Inc. 8.39 7.99 5.24 NA 9.10 ESBK Elmira Savings Bank, FSB 7.60 7.43 2.39 7.38 8.28 HIFS Hingham Institution for Savings 8.01 8.01 - NA 8.59 LARL Laurel Capital Group, Inc. 9.13 7.99 13.65 7.70 9.80 LSBX LSB Corporation 11.96 11.96 - 11.63 12.84 MFLR Mayflower Co-operative Bank 8.25 8.21 0.52 NA 8.93 NBN Northeast Bancorp 7.26 7.12 2.10 8.20 8.10 PHSB PHSB Financial Corp. 14.06 14.06 - NA 14.56 WSB Washington Savings Bank, F.S.B. (The) 9.94 9.94 - 9.93 10.46 WVFC WVS Financial Corp. 7.38 7.38 - 7.35 7.69 ------------------------------------------------------------------------------------------------------------------------ Average 9.68 9.51 2.17 8.70 10.29 Median 8.39 8.01 - 7.95 9.10 Maximum 14.47 14.47 13.65 11.63 14.80 Minimum 7.26 7.12 - 7.35 7.69 ROEB Roebling Financial Corp, Inc. (MHC) 8.59 8.59 - 8.24 9.15 Variance to the Comparable Median 0.20 0.58 - 0.29 0.05
Sources: SNL and Offering Circular Data, FinPro Computations Capitalization - The Comparable Group's median equity to assets ratio -------------- of 8.39% is slightly lower than the Bank's ratio of 8.59%. The Bank's pro forma equity to assets ratio is projected to be 14.18% at the midpoint of the valuation range. Intangible Levels - One factor influencing market values is the level ----------------- of intangibles that an institution carries on its books. Thrifts trade more on tangible book than on book. The Bank does not have any intangibles. Five of the Comparables have some level of intangibles. Conversion Valuation Appraisal Report Page: 38 ================================================================================ The asset quality of an institution is an important determinant of market value. The investment community considers levels of nonperforming loans, Real Estate Owned ("REO") and levels of Allowance for Loan and Lease Losses ("ALLL") in assessing the attractiveness of investing in the common stock of an institution. FIGURE 29 - ASSET QUALITY TABLE
Asset Quality for the Most Recent Quarter -------------------------------------------------------------------- NPLs/ Reserves/ NPAs/ NPAs/ Reserves/ Reserves/ Loans NPLs Assets Equity Loans NPAs + 90 Ticker Short Name (%) (%) (%) (%) (%) (%) --------------------------------------------------------------------------------------------------------------------------------- Comparable Thrift Data ALFC Atlantic Liberty Financial Corp NA NA NA NA 0.52 NA CEBK Central Bancorp, Inc. - NM - - 1.01 NM ESBK Elmira Savings Bank, FSB 0.52 212.78 0.36 4.77 1.10 186.90 HIFS Hingham Institution for Savings 0.04 NM 0.03 0.41 0.78 612.10 LARL Laurel Capital Group, Inc. 1.01 115.85 0.58 6.37 1.17 115.06 LSBX LSB Corporation 0.05 NM 0.02 0.19 1.96 NM MFLR Mayflower Co-operative Bank - NM - - 1.23 NM NBN Northeast Bancorp 0.23 470.63 0.20 2.74 1.07 422.29 PHSB PHSB Financial Corp. NA NA NA NA 1.19 NA WSB Washington Savings Bank, F.S.B. (The) NA NA NA NA 0.55 NA WVFC WVS Financial Corp. NA NA NA NA 1.72 NA ---------------------------------------------------------------------------------------------------------------------------------- Average 0.26 266.42 0.17 2.07 1.12 334.09 Median 0.05 212.78 0.03 0.41 1.10 304.60 Maximum 1.01 470.63 0.58 6.37 1.96 612.10 Minimum - 115.85 - - 0.52 115.06 ROEB Roebling Financial Corp, Inc. (MHC) 0.20 407.50 0.14 1.60 0.83 407.50 Variance to the Comparable Median 0.15 194.72 0.11 1.19 (0.27) 102.91
Sources: SNL and Offering Circular Data, FinPro Computations The Bank's level of nonperforming loans ("NPL") to total loans, at 0.20% is above the Comparable Group median at 0.05%. The Bank had a nonperforming assets to assets ratio of 0.14%, is above the Comparable median of 0.03%. The Bank's reserve level, 0.83% of total loans, is below the Comparable median of 1.10% of loans. Conversion Valuation Appraisal Report Page: 39 ================================================================================ -------------------------------------------------------------------------------- Positive Neutral Negative -------------------------------------------------------------------------------- Higher Deposits to Assets Lower Assets Higher Loans to Assets Higher NPAs Higher Pro Forma Capital Lower ALLL to Loans The Bank has a more favorable asset and liability mix relative to the Comparable Group. The Bank's current capital levels are slightly above the Comparable Group, but will be substantially higher after the conversion. The Bank's ability to leverage the newly raised capital will be discussed in the profitability section. The Bank has higher NPAs, but lower reserves. Taken collectively a slight upward adjustment is warranted. Conversion Valuation Appraisal Report Page: 40 ================================================================================ ------------------------------------ BALANCE SHEET GROWTH ------------------------------------ Relative to the Comparable median, the Bank is experiencing slightly lower deposit growth, but higher loan growth. FIGURE 30 - BALANCE SHEET GROWTH DATA
Balance Sheet Growthfor the Most Recent Quarter ----------------------------------------------- Asset Loan Deposit Growth Growth Growth Rate Rate Rate Short Name (%) (%) (%) Comparable Thrift Data --------------------------------------------------------------------------------------------- Atlantic Liberty Financial Corp 56.76 15.20 8.24 Central Bancorp, Inc. 13.84 (1.97) 24.66 Elmira Savings Bank, FSB 14.13 (2.24) 17.10 Hingham Institution for Savings 29.92 21.47 43.10 Laurel Capital Group, Inc. (1.95) 20.84 (1.81) LSB Corporation (4.78) (10.09) 12.59 Mayflower Co-operative Bank 10.68 1.03 17.67 Northeast Bancorp 16.95 9.25 13.86 PHSB Financial Corp. (21.87) (48.22) (24.98) Washington Savings Bank, F.S.B. (The) 60.57 52.35 77.59 WVS Financial Corp. (16.41) (8.59) (28.05) --------------------------------------------------------------------------------------------- Average 14.35 4.46 14.54 Median 13.84 1.03 13.86 Maximum 60.57 52.35 77.59 Minimum (21.87) (48.22) (28.05) Roebling Financial Corp, Inc. (MHC) (0.59) 12.32 1.45 Variance to the Comparable Median (14.43) 11.29 (12.41) =============================================================================================
Conversion Valuation Appraisal Report Page: 41 ================================================================================ -------------------------------------------------------------------------------- Positive Neutral Negative -------------------------------------------------------------------------------- Higher Loan Growth Lower Asset Growth Lower Deposit Growth Collectively, these factors warrant a modest downward adjustment. Conversion Valuation Appraisal Report Page: 42 ================================================================================ ------------------------------------------- EARNINGS QUALITY, PREDICTABILITY AND GROWTH ------------------------------------------- The earnings quality, predictability and growth are critical components in the establishment of market values for thrifts. Thrift earnings are primarily a function of: o net interest income o loan loss provision o non-interest income o non-interest expense The quality and predictability of earnings is dependent on both internal and external factors. Some internal factors include the mix of the balance sheet, the interest rate sensitivity of the balance sheet, the asset quality, and the infrastructure in place to deliver the assets and liabilities to the public. External factors include the competitive market for both assets and liabilities, the global interest rate scenario, local economic factors and regulatory issues. Investors are focusing on earnings sustainability as interest rate volatility has caused a wide variation in income levels. With the intense competition for both assets and deposits, banks cannot easily replace lost spread and margin with balance sheet growth. Each of these factors can influence the earnings of an institution, and each of these factors is volatile. Investors prefer stability and consistency. As such, solid, consistent earnings are preferred to high but risky earnings. Investors also prefer earnings to be diversified and not entirely dependent on interest income. Conversion Valuation Appraisal Report Page: 43 ================================================================================ The Bank's net income and ROAA have trended downward since the twelve months ended September 30, 2002. The declining trend is a function of declining noninterest income combined with higher noninterest expense. FIGURE 31 - NET INCOME CHART [BAR GRAPH WITH FOLLOWING DATA] 9/01 9/02 9/03 3/04 ---- ---- ---- ---- Net income (in thousands) $387 $582 $559 $478 ROAA 0.62% 0.76% 0.65% 0.54% Source: Offering Prospectus Conversion Valuation Appraisal Report Page: 44 ================================================================================ The Bank is less profitable than the Comparable median ROAA and ROAE. The Bank's higher capitalization following the offering is expected to reduce return on equity for the near term. On a pro forma basis, the Bank's ROAA and ROAE are 0.59% and 4.17%. FIGURE 32 - PROFITABILITY DATA
Profitability for the Most Recent Quarter ----------------------------------------- Return on Return on Avg Assets Avg Equity Ticker Short Name (%) (%) --------------------------------------------------------------------------------------------------- Comparable Thrift Data ALFC Atlantic Liberty Financial Corp 0.92 6.11 CEBK Central Bancorp, Inc. 0.36 4.22 ESBK Elmira Savings Bank, FSB 0.85 10.91 HIFS Hingham Institution for Savings 1.12 13.06 LARL Laurel Capital Group, Inc. 0.57 6.32 LSBX LSB Corporation 1.95 17.11 MFLR Mayflower Co-operative Bank 0.82 9.71 NBN Northeast Bancorp 0.82 11.03 PHSB PHSB Financial Corp. 0.82 6.13 WSB Washington Savings Bank, F.S.B. (The) 2.42 23.58 WVFC WVS Financial Corp. 0.45 6.19 --------------------------------------------------------------------------------------------------- Average 1.01 10.40 Median 0.82 9.71 Maximum 2.42 23.58 Minimum 0.36 4.22 ROEB Roebling Financial Corp, Inc. (MHC) 0.54 6.52 Variance to the Comparable Median (0.28) (3.19)
Sources: SNL and Offering Circular Data, FinPro Computations Conversion Valuation Appraisal Report Page: 45 ================================================================================ FIGURE 33 - INCOME STATEMENT DATA
Income Statement for the Most Recent Quarter --------------------------------------------------------------------------------------- Yield on Net Net Noninterest Noninterest Ave Earn Cost of Interest Interest Income/ Expense/ Efficiency Overhead Assets Funds Spread Margin Avg Assets Avg Assets Ratio Ratio Ticker Short Name (%) (%) (%) (%) (%) (%) (%) (%) -------------------------------------------------------------------------------------------------------------------------------- Comparable Thrift Data ALFC Atlantic Liberty Financial Corp NA NA NA 4.09 0.35 2.67 62.83 59.49 CEBK Central Bancorp, Inc. NA NA NA 3.22 0.25 2.72 84.41 83.09 ESBK Elmira Savings Bank, FSB 5.46 2.09 3.37 3.67 0.79 2.95 68.26 61.11 HIFS Hingham Institution for Savings 5.34 2.11 3.23 3.50 0.29 1.84 50.43 46.20 LARL Laurel Capital Group, Inc. 4.65 2.32 2.33 2.59 0.45 2.08 67.40 61.41 LSBX LSB Corporation NA NA NA 2.86 0.42 2.29 71.58 67.32 MFLR Mayflower Co-operative Bank 5.13 NA NA 3.55 0.61 2.72 68.94 63.19 NBN Northeast Bancorp 5.94 NA NA 3.43 0.99 2.88 66.70 56.51 PHSB PHSB Financial Corp. NA NA NA 2.54 0.31 2.13 76.30 73.31 WSB Washington Savings Bank, F.S.B. (The) NA NA NA 4.86 1.82 2.46 39.16 15.73 WVFC WVS Financial Corp. NA NA NA 1.34 0.16 0.88 59.38 54.48 -------------------------------------------------------------------------------------------------------------------------------- Average 5.30 2.17 2.98 3.24 0.59 2.33 65.04 58.35 Median 5.34 2.11 3.23 3.43 0.42 2.46 67.40 61.11 Maximum 5.94 2.32 3.37 4.86 1.82 2.95 84.41 83.09 Minimum 4.65 2.09 2.33 1.34 0.16 0.88 39.16 15.73 ROEB Roebling Financial Corp, Inc.(MHC) 5.08 1.34 3.74 3.98 0.51 3.30 77.05 73.92 Variance to the Comparable Median (0.26) (0.77) 0.51 0.55 0.09 0.84 9.65 12.81
Sources: SNL and Offering Circular Data, FinPro Computations The Bank's net interest margin is 55 basis points above the Comparable Group median. The Bank's noninterest income is 9 basis points higher and the Bank's noninterest expense is 84 basis points higher. The Bank's efficiency ratio of 77.05% is higher than the Comparable median of 67.40%. On a forward looking basis, after the conversion the Bank's operating expenses are expected to rise as a result of the stock benefit plans and additional costs of being a public company. At the same time, the Bank will have additional capital to deploy and leverage. Conversion Valuation Appraisal Report Page: 46 ================================================================================ -------------------------------------------------------------------------------- Positive Neutral Negative -------------------------------------------------------------------------------- Higher Noninterest Income Lower ROAA Lower Cost of Funds Lower ROAE Higher Net Margin Higher Noninterest Expense Lower Yield on Assets Higher Efficiency Ratio Higher Overhead Ratio The Bank is less profitable than the Comparables. The Bank has been experiencing a downward trend in earnings since 2002. The Bank has advantages in noninterest income and net interest margin, but also has a disadvantage in noninterest expense. The Bank's efficiency ratio is above the Comparable Group. Taken collectively, a slight downward adjustment is warranted for this factor. Conversion Valuation Appraisal Report Page: 47 ================================================================================ ------------------------------------ MARKET AREA ------------------------------------ The market area that an institution serves has a significant impact on value, as future success is interrelated with the economic, demographic and competitive aspects of the market. The location of an institution will have an impact on the trading value of an institution, as many analysts compare the pricing of institutions relative to a state or regional multiples in investor presentations. Specifics on the Bank's markets were delineated in Section 2 - Market Area Analysis. The following figure compares the demographic and competitive data for the counties serviced by the Bank, to the county data of the Comparable Group members. Conversion Valuation Appraisal Report Page: 54 ================================================================================ FIGURE 34 - MARKET AREA DATA
Pop. Per Pop. Per Density Capita No. Branches Branch Pop. Growth Pop. Growth 2002 Unemp. Rate Income June 2003 2003 2000-2002 2002-2007 (per sq. Mar. 2003 $2,002 Institution Name County State (actual) (actual) (%) (%) mile) (%) ($) Atlantic Liberty Financial Kings NY 343 7,227 0.55 1.75 35,108 8.80 $19,170 ------------------------------------------------------------------------------------------------------------------------------- Deposit Weighted Market Data 7,227 0.55 1.75 35,108 8.80 $19,170 Central Bancorp Inc. Middlesex MA 640 2,301 0.48 1.42 1,788 4.40 $37,824 Central Bancorp Inc. Suffolk MA 293 2,367 0.54 1.42 11,852 5.30 $30,580 ------------------------------------------------------------------------------------------------------------------------------- Deposit Weighted Market Data 2,301 0.48 1.42 1,788 4.40 $37,824 Elmira Savings Bank Chemung NY 36 2,492 -1.49 -3.56 220 7.50 $19,726 Elmira Savings Bank Tioga PA 23 1,806 0.38 0.83 37 6.20 $16,540 Deposit Weighted Market Data 2,452 -1.38 -3.30 209 7.42 $19,538 Hingham Instit. for Savings Norfolk MA 310 2,106 0.39 1.31 1,634 4.40 $36,972 Hingham Instit. for Savings Plymouth MA 187 2,561 1.27 3.29 725 5.80 $27,825 ------------------------------------------------------------------------------------------------------------------------------- Deposit Weighted Market Data 2,484 1.12 2.96 878 5.56 $29,365 Laurel Capital Group Inc. Allegheny PA 667 1,895 -1.37 -3.25 1,731 5.20 $26,504 Laurel Capital Group Inc. Butler PA 91 1,945 1.66 4.47 224 6.00 $21,847 ------------------------------------------------------------------------------------------------------------------------------- Deposit Weighted Market Data 1,904 -0.86 -1.97 1,481 5.33 $25,730 LSB Corp. Essex MA 329 2,219 0.93 2.55 1,458 6.40 $30,850 ------------------------------------------------------------------------------------------------------------------------------- Deposit Weighted Market Data 2,219 0.93 2.55 1,458 6.40 $30,850 Mayflower Co-operative Bank Plymouth MA 187 2,561 1.27 3.29 725 5.80 $27,825 ------------------------------------------------------------------------------------------------------------------------------- Deposit Weighted Market Data 2,561 1.27 3.29 725 5.80 $27,825 Mystic Financial Inc. Middlesex MA 640 2,301 0.48 1.42 1,788 4.40 $37,824 ------------------------------------------------------------------------------------------------------------------------------- Deposit Weighted Market Data 2,301 0.48 1.42 1,788 4.40 $37,824 PHSB Financial Corp. Beaver PA 103 1,737 -1.37 -3.09 412 6.40 $20,810 PHSB Financial Corp. Lawrence PA 50 1,870 -1.21 -2.63 259 7.80 $17,280 ------------------------------------------------------------------------------------------------------------------------------- Deposit Weighted Market Data 1,749 -1.35 -3.05 398 6.53 $20,491 Washington Savings Bank FSB Anne Arundel MD 206 2,447 2.93 6.90 1,212 3.30 $31,332 Washington Savings Bank FSB Charles MD 47 2,666 3.93 9.08 272 2.80 $25,747 Washington Savings Bank FSB Prince GeorgeMD 239 3,421 2.00 4.79 1,684 4.10 $26,461 ------------------------------------------------------------------------------------------------------------------------------- Deposit Weighted Market Data 2,782 3.04 7.12 1,004 3.33 $28,064 WVS Financial Corp. Allegheny PA 667 1,895 -1.37 -3.25 1,731 5.20 $26,504 WVS Financial Corp. Butler PA 91 1,945 1.66 4.47 224 6.00 $21,847 ------------------------------------------------------------------------------------------------------------------------------- Deposit Weighted Market Data 1,903 -0.90 -2.07 1,501 5.32 $25,792 Comparable Median 2,301 0.48 1.42 1,458 5.56 $27,825 Roebling Financial Corp. (MHC) Burlington NJ 216 1,987 1.39 3.40 534 4.50 $29,244 Roebling Financial Corp. (MHC) Ocean NJ 250 2,091 2.30 5.97 821 5.70 $24,409 ------------------------------------------------------------------------------------------------------------------------------- Deposit Weighted Market Data 2,024 1.71 4.31 636 4.93 $27,521 ===============================================================================================================================
Sources: SNL, Claritas, FinPro Calculations, US Bureau of Labor Statistics Conversion Valuation Appraisal Report Page: 48 ================================================================================ -------------------------------------------------------------------------------- Positive Neutral Negative -------------------------------------------------------------------------------- Higher Population Growth Lower Population Density Lower Unemployment Slightly Lower Income Levels The Bank's market area is experiencing and is projected to continue to experience population growth which exceeds the Comparable Group's median market area. The Bank's markets have lower population density. Unemployment levels are lower in the Bank's markets, indicating stronger economic conditions. Per capita income levels are slightly lower in the Bank's markets. Based upon these factors, no adjustment is warranted for market area. Conversion Valuation Appraisal Report Page: 49 ================================================================================ ------------------------------------ CASH DIVIDENDS ------------------------------------ The last few years have seen yet another shift away from dividend policies concurrent with conversion. Recent issues have been fully or oversubscribing without the need for the additional enticement of dividends. After the conversion is another issue, however. Pressures on ROAE and on internal rate of returns to investors prompted the industry toward cash dividends. This trend is exacerbated by the lack of growth potential. Typically, when institutions are in a growth mode, they issue stock dividends or do not declare a dividend. When growth is stunted, these institutions shift toward reducing equity levels and thus utilize cash dividends as a tool in managing equity. Recent tax code changes have made cash dividends more attractive to investors. FIGURE 35 - DIVIDEND DATA Dividends ---------------------- Current LTM Dividend Dividend Payout Yield Ratio Ticker Short Name ($) (%) ----------------------------------------------------------------------------- Comparable Thrift Data ALFC Atlantic Liberty Financial Corp 1.43 25.84 CEBK Central Bancorp, Inc. 1.50 35.82 ESBK Elmira Savings Bank, FSB 2.30 31.83 HIFS Hingham Institution for Savings 1.76 32.85 LARL Laurel Capital Group, Inc. 3.93 86.96 LSBX LSB Corporation 3.06 36.96 MFLR Mayflower Co-operative Bank 2.15 44.44 NBN Northeast Bancorp 1.90 24.83 PHSB PHSB Financial Corp. 4.00 114.29 WSB Washington Savings Bank, F.S.B. (The) 2.30 20.56 WVFC WVS Financial Corp. 3.71 71.11 ----------------------------------------------------------------------------- Average 2.55 47.77 Median 2.30 35.82 Maximum 4.00 114.29 Minimum 1.43 20.56 ROEB Roebling Financial Corp, Inc. (MHC) - - Variance to the Comparable Median (2.30) (35.82) Sources: SNL and Offering Circular Data, FinPro Computations Conversion Valuation Appraisal Report Page: 50 ================================================================================ All Comparable institutions had declared cash dividends. The median dividend payout ratio for the Comparable Group was 35.82%, ranging from a high of 114.29% to a low of 20.56%. The Bank, on a pro forma basis (at the mid point of the value range) will have an equity to assets ratio of 14.18%. The Bank will have adequate capital and profits to pay cash dividends. As such, no adjustment is indicated for this factor. Conversion Valuation Appraisal Report Page: 51 ================================================================================ ------------------------------------ LIQUIDITY OF THE ISSUE ------------------------------------ The Comparable Group is by definition composed only of companies that trade in the public markets with all of the Comparables trading on NASDAQ or AMEX. Typically, the number of shares outstanding and the market capitalization provide an indication of how much liquidity there will be in a given stock. The actual liquidity can be measured by volume traded over a given period of time. FIGURE 36 - MARKET CAPITALIZATION DATA
Market Data -------------------------------------------------------------------- Publicly Tangible Market Price Price Price Reported Publicly Rep Value Per Share High Low Book Value Book Value Ticker Short Name ($) ($) ($) ($) ($) ($) --------------------------------------------------------------------------------------------------------------------------- Comparable Thrift Data ALFC Atlantic Liberty Financial Corp 33.00 19.62 20.15 16.80 15.72 15.72 CEBK Central Bancorp, Inc. 53.30 32.00 37.11 26.00 25.61 24.27 ESBK Elmira Savings Bank, FSB 33.50 30.00 33.35 27.55 21.90 21.38 HIFS Hingham Institution for Savings 85.40 41.01 42.50 40.00 20.26 20.26 LARL Laurel Capital Group, Inc. 39.30 20.35 22.33 20.35 14.29 12.34 LSBX LSB Corporation 73.20 16.99 17.50 15.00 13.23 13.23 MFLR Mayflower Co-operative Bank 38.10 18.62 20.20 14.67 8.63 8.59 NBN Northeast Bancorp 48.10 18.95 19.48 18.80 14.85 14.54 PHSB PHSB Financial Corp. 58.10 20.00 21.20 17.60 15.65 15.65 WSB Washington Savings Bank, F.S.B. (The) 83.00 10.44 10.55 8.76 6.41 6.41 WVFC WVS Financial Corp. 42.80 17.27 18.95 17.00 11.83 11.83 --------------------------------------------------------------------------------------------------------------------------- Average 53.44 22.30 23.94 20.23 15.31 14.93 Median 48.10 19.62 20.20 17.60 14.85 14.54 Maximum 85.40 41.01 42.50 40.00 25.61 24.27 Minimum 33.00 10.44 10.55 8.76 6.41 6.41 ROEB Roebling Financial Corp, Inc. (MHC) 12.80 37.00 40.50 29.00 17.66 17.66 Variance to the Comparable Median (35.30) 17.38 20.30 11.40 2.81 3.12
Sources: SNL and Offering Circular Data, FinPro Computations The market capitalization values of the Comparable Group range from a low of $33.0 million to a high of $85.4 million with a median market capitalization of $45.2 million. The Bank expects to have $12.8 million of market capital at the midpoint on a pro forma basis. The Bank is expecting to have a lower level of trading liquidity following the offering due to the small size of the offering. As such, a moderate downward adjustment is warranted. Conversion Valuation Appraisal Report Page: 52 ================================================================================ ------------------------------------ RECENT REGULATORY MATTERS ------------------------------------ Regulatory matters influence the market for thrift conversions. Recently, the OTS has issued revised rules on conversions. The major emphasis of the revised rules is to make MHCs more attractive. The OTS allows for dividend waivers without any dilution to the minority shareholders. The OTS relaxed its repurchase restrictions after the first year, and now allows for additional benefits to insiders when the minority issuance is less than 49.00%. Offsetting these factors is the OTS prohibition of mergers within three years of conversion. None of these factors will impact fully converted institutions. Taken collectively, no adjustment for this factor is warranted as both the Bank and the Comparables will operate in the same ownership structure and will be supervised in the same regulatory environment. Conversion Valuation Appraisal Report Page: 53 ================================================================================ ------------------------------------ MANAGEMENT ------------------------------------ The Bank has developed a good management team with considerable banking experience. The Bank's organizational chart is reasonable for an institution of its size and complexity. The Board is active and oversees and advises on all key strategic and policy decisions and holds the management to high performance standards. As such, no adjustment appears to be warranted for this factor. Conversion Valuation Appraisal Report Page: 54 ================================================================================ ------------------------------------ SUBSCRIPTION INTEREST ------------------------------------ FIGURE 37 - SECOND STEP CONVERSIONS
------------------------------- Percent Change from IPO ------------------------------- Ticker Short Name IPO Date After 1 Day To Date --------------------------------------------------------------------------------------------------- DSFN DSA Financial Corporation 07/30/2004 (6.00) (6.00) PRTRD Partners Trust Financial Group, Inc 07/15/2004 (1.00) (0.50) SYNF Synergy Financial Group, Inc. 01/21/2004 10.90 0.10 PBCP Provident Bancorp, Inc. 01/15/2004 15.00 8.40 2004 Average 4.73 0.50 Median 4.95 (0.20) BKMU Bank Mutual Corporation 10/30/2003 17.80 11.20 JFBI Jefferson Bancshares, Inc. 07/02/2003 23.90 27.30 FNFG First Niagara Financial Group, Inc. 01/21/2003 12.70 23.00 WAYN Wayne Savings Bancshares, Inc. 01/09/2003 12.00 62.00 SFFS Sound Federal Bancorp, Inc. 01/07/2003 10.00 30.40 OCNB Bridge Street Financial, Inc. 01/06/2003 1.60 51.00 2003 Average 13.00 34.15 Median 12.35 28.85 CSBC Citizens South Banking Corporation 10/01/2002 (0.50) 30.70 BRKL Brookline Bancorp, Inc. 07/10/2002 10.60 43.70 WGBC Willow Grove Bancorp, Inc. 04/04/2002 9.50 63.20 2002 Average 6.53 45.87 Median 9.50 43.70 PHSB PHSB Financial Corp. 12/21/2001 22.40 100.00 FFFL Fidelity Bankshares, Inc. 05/15/2001 22.31 244.00 2001 Average 22.36 172.00 Median 22.36 172.00 1/1/2001 to Average 10.75 45.90 08/02/04 Median 10.90 30.40
There have been four second step conversions completed year to date, and six in 2003. All seven have experienced a moderate first day price "pop". As second step conversions have historically been priced at premiums to similar time frame standard conversions, there has been less room for aftermarket price appreciation. Conversion Valuation Appraisal Report Page: 55 ================================================================================ FIGURE 38 - RECENT STANDARD CONVERSION PERFORMANCE
------------------------ Percent Change from IPO ------------------------ Ticker Short Name IPO Date After 1 Day To Date ---------------------------------------------------------------------------------------------------- TDCB Third Century Bancorp 05/06/2004 13.20 12.50 SEFL St. Edmond's FSB 05/06/2004 (1.50) (3.50) NABC New Haven Savings Bank 04/02/2004 52.00 39.40 ---------------------------------------------------------------------------------------------------- 2004 YTD Average 21.23 16.13 Median 13.20 12.50 ---------------------------------------------------------------------------------------------------- KNBT Keystone Nazareth Bank & Trust Co. 11/03/2003 68.80 62.90 RPFG Rainier Pacific Savings Bank 10/21/2003 69.90 66.00 CFBC Community First Bank 06/27/2003 20.00 46.90 RFBK Rantoul First Bank 04/02/2003 15.10 60.00 PFS Provident Bank 01/16/2003 55.00 76.60 CCFC Clay County S&LA 01/09/2003 20.00 37.00 ---------------------------------------------------------------------------------------------------- 2003 Average 41.47 58.23 Median 37.50 61.45 ---------------------------------------------------------------------------------------------------- ALFC Atlantic Liberty Savings 10/23/2002 30.20 96.20 TONE TierOne Bank 10/02/2002 38.00 110.90 MCBF Monarch Community Bank 08/30/2002 16.80 42.30 FPTB Pacific Trust Bank 08/23/2002 18.58 87.50 RSVB Mt. Troy Savings Bank 04/08/2002 25.00 62.50 HRGB Heritage Savings Bank 02/26/2002 20.50 161.70 ---------------------------------------------------------------------------------------------------- 2002 Average 24.85 93.52 Median 22.75 91.85 ---------------------------------------------------------------------------------------------------- AFBA Allied First Bank 12/31/2001 20.00 44.00 CSFC Michigan City Savings and Loan Association 12/28/2001 20.00 140.00 PBNC Peoples Federal Savings Bank 10/12/2001 21.50 118.00 GLBP Globe Homestead Federal 07/10/2001 13.12 62.50 BAFI Affiliated Bank 06/01/2001 0.00 210.00 CFSL Chesterfield FS&LA of Chicago 05/02/2001 36.50 209.10 FBTC First Bank & Trust 04/19/2001 13.20 18.00 BUCS BUCS Federal 03/15/2001 30.00 160.00 CTZN Citizens First Savings Bank 03/07/2001 38.10 127.00 ---------------------------------------------------------------------------------------------------- 2001 Average 21.38 120.96 Median 20.00 127.00 ---------------------------------------------------------------------------------------------------- 1/1/2001 to Average 21.38 120.96 8/2/2004 Median 20.00 127.00 ---------------------------------------------------------------------------------------------------- ===================================================================================================
Source: SNL Securities, FinPro calculations As the prior two tables highlight, recent standard conversions have experienced a greater after-market increases than second step conversions. The recent price appreciation of second steps conversions warrants a moderate upward adjustment. Conversion Valuation Appraisal Report Page: 56 ================================================================================ ------------------------------------ VALUATION ADJUSTMENTS ------------------------------------ Relative to the Comparables, the following adjustments need to be made to the Bank's pro forma market value. Valuation Factor Valuation Adjustment -------------------------------------------------------------------------------- Financial Condition Slight Upward Balance Sheet Growth Modest Downward Earnings Quality, Predictability and Growth Slight Downward Market Area No Adjustment Dividends No Adjustment Liquidity of the Issue Moderate Downward Recent Regulatory Matters No Adjustment Additionally, the following adjustment should be made to the Bank's market value. Valuation Factor Valuation Adjustment -------------------------------------------------------------------------------- Management No Adjustment Subscription Interest Moderate Upward Conversion Valuation Appraisal Report Page: 57 ================================================================================ 6. Valuation In applying the accepted valuation methodology promulgated by the regulators, i.e., the pro forma market value approach, four key pricing multiples were considered. The three multiples include: Price to earnings ("P/E") Price to book value ("P/B") Price to assets ("P/A") All of the approaches were calculated on a pro forma basis including the effects of the conversion proceeds. All of the assumptions utilized are presented in Exhibit 10. ------------------------------------------------- DISCUSSION OF WEIGHT GIVEN TO VALUATION MULTIPLES ------------------------------------------------- To ascertain the pro forma estimated market value of the Bank, the market multiples for the Comparable Group were utilized. As a secondary check, all New Jersey public thrifts, all publicly traded thrifts and the recent (2001 to date) and historical standard conversions were assessed. The multiples for the Comparable Group, all publicly traded thrifts, and New Jersey publicly traded thrifts are shown in Exhibit 7. Price to Earnings - According to the OTS Appraisal Guidelines: "When ----------------- both the converting institution and the comparable companies are recording "normal" earnings. A P/E approach may be the simplest and most direct method of valuation. When earnings are low or negative, however, this approach may not be appropriate and the greater consideration should be given to the P/BV approach." In this particular case, the Bank's earnings are "normal". As a basis for comparison, the price to core earnings was utilized for both the Bank and the Comparable Group to eliminate any nonrecurring items. As such, this approach is applicable, meaningful and appropriate in this appraisal. Conversion Valuation Appraisal Report Page: 58 ================================================================================ Price to Book/Price to Tangible Book - According to the OTS Appraisal -------------------------------------- Guidelines: "The P/BV approach works best when the converting institution and the Comparables have a normal amount of book value. The P/BV approach could seriously understate the value of an institution that has almost no book value but has an outstanding future earnings potential. For converting institutions with high net worth, the appraiser may have difficulty in arriving at a pro forma market value because of pressure placed on the P/E multiple as higher P/BV levels are required to reflect a similar P/BV ratio as the peer group average. The P/BV approach also suffers from the use of historical cost accounting data." Since thrift earnings in general have had a high degree of volatility over the past decade, the P/B is utilized frequently as the benchmark for market value. A better approach is the P/TB approach. In general, investors tend to price financial institutions on a tangible book basis, because it incorporates the P/B approach adjusted for intangibles. Initially following conversion, FinPro feels that thrifts often trade on a price to tangible book basis. Currently, the Bank and the Comparable Group have normal levels of capital, however, after the conversion the Bank is expected to have a higher level of capital. Price to Assets - According to the OTS Appraisal Guidelines: "This --------------- approach remedies the problems of a small base that can occur with the P/BV approach, but the approach has many of the other limitations of the latter approach (the P/BV approach)." FinPro places little weight on this valuation approach due to the lack of consideration of asset and funding mixes and the resulting earnings impact. In conclusion, in estimating the market value for the Bank, the most weight was placed on the P/TB approach followed closely by the P/E approach. The P/B was given much less weight and the P/A ratio was not given much weight at all. Conversion Valuation Appraisal Report Page: 59 ================================================================================ ------------------------------------ EVALUATION OF THE EXCHANGE RATIO ------------------------------------ In a second step, the appraisal must equally weigh the fairness of the value to both the existing minority shareholders, as well as new equity investors. These interests are at odds as the existing shareholders desire a higher value and thus a higher exchange ratio, while the new equity investors desire a lower value. This valuation gave equal weight to both the existing minority shareholders and the new investors. FinPro's estimated value range was designed to provide standard conversion pricing at the low end of the estimated value range, while accounting for the exchange of the minority shareholders at the high end of the range. The Bank's stock closed at $34.25 per share on August 2, 2004. This would equal an exchange ratio of 3.4250, which is between approximately the maximum of the estimated value range. If the offering were to close with an exchange ratio below 3.425, existing shareholders could see their value diluted. However, the second step would benefit the minority shareholders in the form of increased liquidity, the addition of an exit strategy and book value accretion. With this estimated value range, FinPro will let the market decide whether the Bank should be priced closer to standard conversions at the low end of the estimated value range or closer to the exchange value at the high end of the range. Conversion Valuation Appraisal Report Page: 60 ================================================================================ ----------------------------------------- OFFERING VALUE IN RELATION TO COMPARABLES ----------------------------------------- Based upon the premiums and discounts defined in the section above, the Bank pricing at the midpoint is estimated to be $12,800,000. Based upon a range below and above the midpoint value, the relative values are $10,880,500 at the minimum and $14,720,000 at the maximum, respectively. At the super maximum of the estimated value range, the offering value would be $16,928,000. At the various levels of the estimated value range, the full offering would result in the following offering data: FIGURE 39 - VALUE RANGE - FULL OFFERING
------------------------------------------------------------------------ Appraised Value ------------------------------------------------------------------------ Minimum Midpoint Maximum SuperMaximum * ------------------------------------------------------------------------ Conclusion Total Shares 1,088,000 1,280,000 1,472,000 1,692,800 Price per Share $ 10 $ 10 $ 10 $ 10 Full Conversion Value $ 10,880,000 $ 12,800,000 $ 14,720,000 $ 16,928,000 Exchange Shares 500,698 589,056 677,415 779,020 Exchange Percent 46.02% 46.02% 46.02% 46.02% Conversion Shares 587,302 690,944 794,585 913,780 Conversion Percent 53.98% 53.98% 53.98% 53.98% Gross Proceeds $ 5,873,020 $ 6,909,440 $ 7,945,850 $ 9,137,800 Exchange Value $ 5,006,980 $ 5,890,560 $ 6,774,150 $ 7,790,200 Exchange Ratio 2.5551 3.0060 3.4569 3.9754 ------------------------------------------------------------------------ * SuperMaximum is an overallotment option that is 15% above the maximum amount.
Source: FinPro Inc. Pro Forma Model This equates to the following multiples: FIGURE 40 - VALUE RANGE PRICING MULTIPLES
------------------------------------------------------------------------------ Illiquid Bank Comparables State National ------------------------------------------------------------------------------ Mean Median Mean Median Mean Median ---- ------ ---- ------ ---- ------ Min 19.23 Price-Core Earnings Ratio P/E Mid 22.73 19.51 17.05 18.44 15.80 22.31 16.45 ----------------------------- Max 26.32 Smax 30.30 Min 88.34% Price-to-Book Ratio P/B Mid 96.90% 149.10% 137.00% 171.55% 173.75% 153.14% 140.05% ----------------------- Max 104.28% Smax 111.61% Min 88.34% Price-to-Tangible Book Ratio P/TB Mid 96.90% 152.44% 140.40% 182.48% 184.40% 171.25% 153.40% --------------------------------- Max 104.28% Smax 111.61% Min 11.79% Price-to-Assets Ratio P/A Mid 13.74% 14.14% 15.36% 15.83% 16.38% 14.94% 14.03% ------------------------- Max 15.65% Smax 17.80%
Conversion Valuation Appraisal Report Page: 61 ================================================================================ Source: FinPro Inc. Pro Forma Model FIGURE 41 - COMPARABLE PRICING MULTIPLES TO THE BANK'S PRO FORMA MIDPOINT
--------------------------------------------------------------------------- Price Relative to --------------------------------------------------------------------------- Earnings Core Earnings Book Tangible Book Assets ------------------------------------------------------------------------------------------------------------------- The Bank (at midpoint) Full Conversion 22.73 22.73 96.90% 96.90% 13.74% ------------------------------------------------------------------------------------------------------------------- Comparable Group Median 17.05 17.05 137.00% 140.40% 15.36% ------------------------------------------------------------------------------------------------------------------- (Discount) Premium 33.31% 33.31% -29.27% -30.98% -10.55% -------------------------------------------------------------------------------------------------------------------
Source: FinPro Calculations Figure 41 illustrates that at the midpoint of the estimated valuation range the Bank is priced at a 33.31% premium to the Comparable median price to core earnings multiple. On a tangible book basis, the Bank is priced at a 30.98% discount. FIGURE 42 - COMPARABLE PRICING MULTIPLES TO THE BANK'S PRO FORMA SUPER MAXIMUM
--------------------------------------------------------------------- Price Relative to --------------------------------------------------------------------- Earnings Core Earnings Book Tangible Book Assets ----------------------------------------------------------------------------------------------------------------- The Bank (at the supermax) Full Conversion 30.30 30.30 111.61% 111.61% 17.80% ----------------------------------------------------------------------------------------------------------------- Comparable Group Median 17.05 17.05 137.00% 140.40% 15.36% ----------------------------------------------------------------------------------------------------------------- (Discount) Premium 77.71% 77.71% -18.53% -20.51% 15.89% -----------------------------------------------------------------------------------------------------------------
Source: FinPro Calculations Figure 42 illustrates that at the super maximum of the estimated valuation range the Bank is priced at a 77.71% premium to the Comparable median price to core earnings multiple. On a tangible book basis, the Bank is priced at a 20.51% discount. Conversion Valuation Appraisal Report Page: 62 ================================================================================ ---------------------------------------------- COMPARISON TO ILLIQUID FULLY CONVERTED THRIFTS ---------------------------------------------- There is a significant different between the asset base of the Comparable Group relative to the Bank, which concerned FinPro in selecting the Comparable Group. In order to mitigate the concern, FinPro decided that it was appropriate to compare the estimated value range established using the Comparable Group relative to the pricing multiples of similar size illiquid fully converted thrifts. There are six fully converted thrifts that trade on the OTC Bulletin Board that are located in the Mid Atlantic Region. There are no illiquid fully converted thrifts in the New England Region. Four of the six, RSV, Farnsworth, BUCs and SE, have assets less than $200 million and the other two, American Bank and Nittany, have assets between $200 million and $300 million. These six thrifts shall serve as an Illiquid Comparable Group. A financial comparison of the Bank's financial ratios relative to the Illiquid Comparable Group is included as Exhibit 14. Relative to the Illiquid Comparable Group, the following adjustments need to be made to the Bank's pro forma market value. Valuation Factor Valuation Adjustment -------------------------------------------------------------------------------- Financial Condition Moderate Upward Balance Sheet Growth Downward Earnings Quality, Predictability and Growth Moderate Downward Market Area No Adjustment Dividends No Adjustment Liquidity of the Issue No Adjustment Recent Regulatory Matters No Adjustment Conversion Valuation Appraisal Report Page: 63 ================================================================================ Additionally, the following adjustment should be made to the Bank's market value. Valuation Factor Valuation Adjustment -------------------------------------------------------------------------------- Management No Adjustment Subscription Interest Moderate Upward After reviewing these factors, FinPro believes that the Bank should be priced at a discount to the Illiquid Comparable Group. The premiums/(discounts) relative to the Illiquid Comparable Group are as follows: FIGURE 43 - ILLIQUID COMPARABLE PRICING MULTIPLES TO THE BANK'S PRO FORMA MIDPOINT
---------------------------------------------------------------- Price Relative to ---------------------------------------------------------------- Earnings Core Earnings Book Tangible Book Assets ---------------------------------------------------------------------------------------------------------------- The Bank (at midpoint) Full Conversion 22.73 22.73 96.90% 96.90% 13.74% ---------------------------------------------------------------------------------------------------------------- Illiquid Comparable Group Median 14.80 17.50 103.00% 107.80% 9.05% ---------------------------------------------------------------------------------------------------------------- (Discount) Premium 53.58% 29.89% -5.92% -10.11% 51.82% ================================================================================================================
Source: FinPro Calculations Figure 43 illustrates that at the midpoint of the estimated valuation range the Bank is priced at a 29.89% premium to the Illiquid Comparable median price to core earnings multiple. On a tangible book basis, the Bank is priced at a 10.11% discount. FIGURE 44 - ILLIQUID COMPARABLE PRICING MULTIPLES TO THE BANK'S PRO FORMA SUPER MAXIMUM
-------------------------------------------------------------- Price Relative to -------------------------------------------------------------- Earnings Core Earnings Book Tangible Book Assets ---------------------------------------------------------------------------------------------------------------- The Bank (at the supermax) Full Conversion 30.30 30.30 111.61% 111.61% 17.80% ---------------------------------------------------------------------------------------------------------------- Illiquid Comparable Group Median 14.80 17.50 103.00% 107.80% 9.05% ---------------------------------------------------------------------------------------------------------------- (Discount) Premium 104.73% 73.14% 8.36% 3.53% 96.69% ----------------------------------------------------------------------------------------------------------------
Source: FinPro Calculations Figure 44 illustrates that at the super maximum of the estimated valuation range the Bank is priced at a 73.14% premium to the Illiquid Comparable median price to core earnings multiple. On a tangible book basis, the Bank is priced at a 3.53% discount. Conversion Valuation Appraisal Report Page: 64 ================================================================================ ------------------------------------------------ COMPARISON TO OTHER SELECTED THRIFT INSTITUTIONS ------------------------------------------------ As a Tertiary check FinPro reviewed the pro forma pricing multiples of the Bank relative to two other New Jersey thrift institutions. Farnsworth Bancorp ("Farnsworth") is a fully converted thrift institution located in the Bank's general market area. Farnsworth is also comparable in size at $96.2 million in assets and has similar profitability levels. Farnsworth would be a perfect comparable if it was liquidly traded on a major exchange, which it is not. Synergy Financial Services ("Synergy") is a recent second step located in central New Jersey. Synergy is substantially larger than the Bank. FIGURE 45 - COMPARISON TO OTHER SELECTED THRIFT INSTITUTIONS
--------------------------------------------------------------------- Current Current Current Price in Relation to --------------------------------------------------------------------- Stock Market Tangible Price Value Earnings Core EPS LTM EPS LTM Core EPS Book Value Book Value Ticker Short Name ($) ($M) (x) (x) (x) (x) (%) (%) ------------------------------------------------------------------------------------------------------------------------------------ FNSW Farnsworth Bancorp, Inc. 16.50 8.7 14.7 16.8 14.1 17.5 125.6 125.6 SYNF Synergy Financial Group, Inc. 10.01 124.7 31.3 NA 30.3 NA 119.4 120.2 Roebling - Minimum - NA NA 19.2 19.2 88.3 88.3 Roebling - Midpoint - NA NA 22.7 22.7 96.9 96.9 Roebling - Maximum - NA NA 26.3 26.3 104.3 104.3 Roebling - Supermaximum - NA NA 30.3 30.3 111.6 111.6
Source: SNL Securities, FInPro calculations Conversion Valuation Appraisal Report Page: 65 ================================================================================ ------------------------------------ VALUATION CONCLUSION ------------------------------------ The best indicator of an institutions value is the market, specifically the stock price. Trading as an MHC under the symbol ROEB, the stock has been between $23.00 and $40.00 during the period January 1, 2004 and to August 2, 2004. The Bank's current trading price is $34.25 per share. As the price is in the range, it is indicative that the range is appropriate. It is, therefore, our opinion that as of August 2, 2004, the estimated pro forma market value of the Bank in a full offering was $12,800,000 at the midpoint of a range with a minimum of $10,880,000 to a maximum of $14,720,000 at 15% below and 15% above the midpoint of the range respectively. Assuming an adjusted maximum value of 15% above the maximum value, the adjusted maximum value or super maximum value in a full offering is $16,928,000. The stock will be issued at $10.00 per share. At the midpoint of the EVR, 589,056 shares will be exchanged and 690,944 conversion shares will be issued based on an exchange ratio of 3.0060.
----------------------------------------------------------------- Appraised Value ----------------------------------------------------------------- Conclusion Minimum Midpoint Maximum Super Maximum* ----------------------------------------------------------------- Total Shares 1,088,000 1,280,000 1,472,000 1,692,800 Price per Share $ 10 $ 10 $ 10 $ 10 Full Conversion Value $ 10,880,000 $ 12,800,000 $ 14,720,000 $ 16,928,000 Exchange Shares 500,698 589,056 677,415 779,020 Exchange Percent 46.02% 46.02% 46.02% 46.02% Conversion Shares 587,302 690,944 794,585 913,780 Conversion Percent 53.98% 53.98% 53.98% 53.98% Gross Proceeds $ 5,873,020 $ 6,909,440 $ 7,945,850 $ 9,137,800 Exchange Value $ 5,006,980 $ 5,890,560 $ 6,774,150 $ 7,790,200 Exchange Ratio 2.5551 3.0060 3.4569 3.9754 ----------------------------------------------------------------- * SuperMaximum is an overallotment option that is 15% above the maximum amount.
Pro forma comparisons of the Bank's value range with the Comparable Group, all public thrifts, New Jersey public thrifts and second step conversions are shown in Exhibit 11. The document represents an initial valuation for the Bank. Due to the duration of time that passes between the time this document is compiled and the time the offering closes, numerous factors could lead FinPro to update or revised the appraised value of the Bank. Some factors that could lead FinPro to adjust the appraised value include: (1) changes in the Bank's operations and financial condition; (2) changes in the market valuation or financial condition of the Comparable Group; (3) changes in the broader market; and (4) changes in the market for thrift conversions. Should there be material changes to any of these factors, FinPro will prepare an appraisal update to appropriately adjust the value of the Bank. At the time of closing, FinPro will prepare a final appraisal to determine if the valuation range is still appropriate and determine the exact valuation amount appropriate for the Bank.
------------------------------------------------------------------------------------------------------------------------------------ Exhibit 1 - Firm Overview ------------------------------------------------------------------------------------------------------------------------------------ FinPro, Inc. was established in 1987 as a full service investment banking an Asset / Liability Management management consulting firm specializing in providing advisory services to the financial o Interest Rate Risk Modeling institutions industry. o Investment Advisory o Balance Sheet Restructuring FinPro is not a transaction oriented firm. This approach uniquely positions FinPro as an objective third party willing to explore all strategic alternatives rather than Capital Markets focus solely on transaction oriented strategies. o Corporate Finance o Mergers and Acquisitions FinPro believes that a client deserves to be presented with all alternatives. Careful o Fairness Opinions consideration is given to the associated benefits and drawbacks of each alternative so o Bank Appraisals and Valuations decisions can be made on the merits of these alternatives. Compliance FinPro principals are frequent speakers and presenters at financial institution trade o Quarterly Bank Fiduciary Package association functions. FinPro teaches: o CRA Performance Review and Improvement o strategic planning and mergers and acquisitions at the Stonier School of o Compliance Reviews Banking; o strategic planning to examiners from the Federal Deposit Insurance Financial Corporation, Office of Thrift Supervision and several State Banking o Core Deposit Studies and Intangible Departments; Impairment Analysis o various capital market and finance courses at the Graduate School of Bank o Earnings Improvement Studies Investments and Financial Management at the University of South Carolina; and o an online mergers and acquisitions course for the American Bankers Association. Market Feasibility Studies o Market Studies and Market Area FinPro maintains a library of databases encompassing bank and thrift capital markets Evaluations data, census data, branch deposit data, national peer data, market research data along o Site Studies with many other related topics. As such, FinPro can provide quick, current and precises o Branch Applications analytical assessments based on timely data. In addition, FinPro's geographic mapping capabilities give it a unique capability to thematically illustrate multiple issues and Market Research to provide targeted marketing opportunities to its clients. o Branch Evaluations, Acquisitions, Sales, Consolidations and Swaps o Branch and Product Profitability o Competitive Analysis and Positioning o Customer Segmentation and Profiling Operations o Financial Reporting o Operational and Systems Consulting Strategic Planning o Budgeting o Strategic and Business Planning
-------------------------------------------------------------------------------- FINPRO, INC. -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Exhibit 1 - Firm Overview, Donald J. Musso -------------------------------------------------------------------------------- [GRAPHIC OMITTED] Donald J. Musso President Donald founded FinPro, Inc. in 1987 as a consulting and investment banking firm located in New Jersey that specializes in providing advisory services to the financial institutions industry. Donald has a broad background in strategic planning, asset/liability management, market feasibility assessments, de novo bank formation and investment banking. Besides his consulting experience, he has solid industry experience, having worked for two multi-billion asset, east coast financial institutions. Currently, Donald is a founder, significant shareholder and Board member for Nittany Financial Corporation, a bank he helped form in 1998. Donald has provided expert testimony on financial institution matters for the Federal Bankruptcy Court, the Office of Thrift Supervision and the United States Attorney's Office. Donald is a frequent speaker on financial institution related topics and has assisted trade groups such as the ACB, ABA, CSBS and numerous State Organizations in various activities. He is also on the faculty of Stonier Graduate School of Banking, teaching Strategic Planning and Mergers and Acquisitions. Donald also teaches at the Graduate School of Bank Investments and Financial Management at the University of South Carolina and will begin teaching at the Graduate School of Banking at Colorado in 2004. Prior to establishing FinPro, Donald had direct industry experience having managed the Corporate Planning and Mergers and Acquisitions departments for Meritor Financial Group, a $20 billion firm in Philadelphia. Before that, he had responsibility for the banking, thrift and real estate consulting practice in the State of New Jersey for Deloitte Haskins & Sells. He began his career with Goldome Savings Bank. Donald earned a B.S. in Finance from Villanova University and a M.B.A. in Finance from Fairleigh Dickinson University. -------------------------------------------------------------------------------- FINPRO, INC. -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Exhibit 1 - Firm Overview, Dennis E. Gibney -------------------------------------------------------------------------------- . [GRAPHIC OMITTED] Dennis E. Gibney, CFA Managing Director Dennis joined FinPro in June of 1996. Dennis manages all of the firm's capital markets engagements including mergers and acquisitions, stock valuations and fairness opinions. In 2003, Dennis taught the American Bankers Association's Merger and Acquisition Course. Dennis has worked on the appraisal of over $2.0 billion in thrift conversion IPOs, the most notable being that of Roslyn Bancorp, Inc. He has also prepared expert witness testimony for litigation involving corporate appraisal methodology. Dennis' areas of expertise include financial modeling, merger accounting, security valuation, interest rate risk analysis, portfolio management and competitive analysis. Prior to joining the firm, Dennis received broad-based experience in the securities industry. He worked as an Allocations Specialist for Merrill Lynch & Company, supporting their mortgage-backed securities trading desk in New York and for Sandler O'Neill & Partners. Dennis is a member of the New York Society of Security Analysts. He earned a B.S. from Babson College with a triple-major in Finance, Investments and Economics. -------------------------------------------------------------------------------- FINPRO, INC. -------------------------------------------------------------------------------- Exhibit 2 Consolidated Balance Sheets
March 31, September 30, ------------ ------------------------------- 2004 2003 2002 ------------ ------------ ------------ (Unaudited) Assets: Cash and due from banks $ 1,817,928 $ 1,886,059 $ 2,060,947 Interest-bearing deposits 582,520 145,459 5,162,032 ------------ ------------ ------------ Total cash and cash equivalents 2,400,448 2,031,518 7,222,979 Certificates of deposit 1,500,000 1,700,000 900,000 Securities available for sale 20,786,987 23,883,835 23,143,032 Securities held to maturity; approximate fair value of $795,000 (2003) and $1,117,000 (2002) 1,250,966 1,802,331 3,080,425 Loans receivable, net 58,771,593 55,361,709 45,730,956 Accrued interest receivable 349,994 383,238 447,553 Federal Home Loan Bank of New York stock, at cost 563,900 563,900 472,100 Premises and equipment 1,689,535 1,749,829 1,135,222 Other assets 171,426 267,885 84,830 ------------ ------------ ------------ Total assets $ 87,484,849 $ 87,744,245 $ 82,217,097 ============ ============ ============ Liabilities and stockholders' equity: Liabilities: Deposits $ 78,975,642 $ 78,407,903 $ 74,361,128 Borrowed funds 1,200,000 -- Advances from borrowers for taxes and insurance 437,462 412,535 409,103 Other liabilities 558,907 543,447 714,468 ------------ ------------ ------------ Total liabilities 79,972,011 80,563,885 75,484,699 ------------ ------------ ------------ Commitments and contingencies -- -- -- Stockholders' equity: Serial preferred stock, no par value, authorized 1,000,000 shares, no shares issued -- -- -- Common stock; par value $.10; authorized 4,000,000 shares; shares issued and outstanding 425,500; 42,550 42,550 42,550 Additional paid-in-capital 1,702,106 1,690,532 1,674,209 Unallocated employee stock ownership plan shares (54,880) (62,720) (78,400) Retained earnings - substantially restricted 5,647,559 5,409,050 4,849,934 Accumulated other comprehensive income - unrealized gain on securities available for sale, net of tax 175,503 100,948 244,105 ------------ ------------ ------------ Total stockholders' equity 7,512,838 7,180,360 6,732,398 ------------ ------------ ------------ Total liabilities and stockholders' equity $ 87,484,849 $ 87,744,245 $ 82,217,097 ============ ============ ============
Exhibit 3 Consolidated Income Statements
For the Six Months Ended For the Year Ended March 31, September 30, ---------------------------- ---------------------------- 2004 2003 2003 2002 ---------- ---------- ---------- ----------- (Unaudited) Interest income: Loans receivable $1,711,494 $1,604,911 $3,305,751 $ 3,234,583 Investment securities 378,278 525,850 955,746 1,159,463 Other interest-earning assets 32,779 64,443 118,685 99,387 ---------- ---------- ---------- ----------- Total interest income 2,122,551 2,195,204 4,380,182 4,493,433 ---------- ---------- ---------- ----------- Interest expense: Deposits 457,516 631,905 1,174,969 1,413,720 Borrowed funds 1,070 102 142 5,151 Total interest expense 458,586 632,007 1,175,111 1,418,871 ---------- ---------- ---------- ----------- Net interest income before provision for loan losses 1,663,965 1,563,197 3,205,071 3,074,562 Provision for loan losses 16,000 36,000 60,000 96,000 Net interest income after provision for loan losses 1,647,965 1,527,197 3,145,071 2,978,562 ---------- ---------- ---------- ----------- Non-interest income: Loan fees and late charges 27,395 32,774 75,397 55,186 Account servicing and other 197,763 199,211 409,496 376,178 Gain on sale of loans 1,671 6,243 16,148 5,910 Gain on sale of real estate owned -- -- -- 2,288 Total non-interest income 226,829 238,228 501,041 439,562 ---------- ---------- ---------- ----------- Non-interest expense: Compensation and benefits 806,730 697,579 1,421,652 1,342,750 Occupancy and equipment 162,161 135,231 276,235 229,921 Service bureau and data processing 200,858 193,765 397,992 356,503 Federal insurance premiums 5,878 5,995 11,904 11,387 Other expense 281,299 281,350 577,830 539,841 Total non-interest expense 1,456,926 1,313,920 2,685,613 2,480,402 ---------- ---------- ---------- ----------- Income before income taxes 417,868 451,505 960,499 937,722 Income taxes 179,359 190,336 401,383 356,171 ---------- ---------- ---------- ----------- Net income $ 238,509 $ 261,169 $ 559,116 $ 581,551 ========= ========= ========= ========= Earnings per common share: Basic $ 0.57 $ 0.63 $ 1.34 $ 1.40 Diluted $ 0.56 $ 0.62 $ 1.33 $ 1.39 ========= ========= ========= ========= Weighted average number of shares outstanding: Basic 419,424 417,856 418,248 416,680 Diluted 423,414 421,819 421,829 419,488 ========= ========= ========= =========
Page 1 Exhibt 3
For the Six Months Ended For the Year Ended March 31, September 30, --------------------------- --------------------------- 2004 2003 2003 2002 --------- --------- --------- --------- (Unaudited) Net income $ 238,509 $ 261,169 $ 559,116 $ 581,551 Other comprehensive income, net of tax: Unrealized gain (loss) on securities available for sale, net of tax 74,555 (28,825) (143,157) 149,226 --------- --------- --------- --------- Comprehensive income $ 313,064 $ 232,344 $ 415,959 $ 730,777 ========= ========= ========= =========
Page 2 -------------------------------------------------------------------------------- Exhibit 4 Roebling Bank TFR Schedule SO and Audited Income Statement Reconciliation For the Twelve Months Ended March 31, 2004 Net Income Description ($ in 000's) ----------- ------------ 06/30/03 SO Net Income $ 163 09/30/03 SO Net Income 135 12/31/03 SO Net Income 118 03/31/04 SO Net Income 121 --------- Net Income for 12 Months Ended 3/31/04 $ 537 Financial Statements: Net Income for 12 Months Ended 3/31/04 $ 537 Variance $ - -------------------------------------------------------------------------------- Exhibit 5 Consolidated Statements of Cash Flows
Six Months Ended March 31, Year Ended September 30, ---------------------------- ---------------------------- 2004 2003 2003 2002 ------------ ------------ ------------ ------------ Cash flows from operating activities: Net income $ 238,509 $ 261,169 $ 559,116 $ 581,551 Adjustments to reconcile net income to cash provided by operating activities: Depreciation 77,931 47,219 107,204 92,770 Amortization of premiums and discounts, net 31,325 62,159 118,856 62,644 Amortization of deferred loan fees and costs, net 868 10,573 37,676 44,540 Provision for loan losses 16,000 36,000 60,000 96,000 Gain on sale of loans (1,671) (6,243) (16,148) (5,910) Gain on sale of real estate owned (2,288) Decrease in other assets 23,581 8,357 (165,271) (26,252) Decrease in accrued interest receivable 33,244 1,752 64,315 (62,669) Increase (decrease) in other liabilities 38,759 (161,465) (93,606) 134,289 Allocation of ESOP shares 19,414 15,456 32,003 26,901 ------------ ------------ ------------ ------------ Net cash provided by operating activities 477,960 274,977 704,145 941,576 ------------ ------------ ------------ ------------ Cash flows from investing activities: Purchase of certificates of deposit (1,000,000) (1,000,000) (600,000) Proceeds from maturities of certificates of deposit 200,000 200,000 Purchase of securities available for sale (3,500,000) (9,390,000) (21,865,683) (20,117,114) Proceeds from payments and maturities of securities available for sale 6,690,044 10,281,189 20,767,771 9,387,434 Purchase of securities held to maturity (140,125) (76,000) Proceeds from payments and maturities of secrities held to maturity 691,103 910,384 1,353,991 3,191,270 Loan originations, net of principal repayments (3,850,621) (8,217,864) (14,338,036) (3,762,864) Proceeds from sale of loans 425,540 2,280,440 4,625,755 993,062 Proceeds from sale of real estate owned 28,188 Purchase of Federal Home Loan Stock (91,800) (86,300) Purchase of premises and equipment (17,537) (212,708) (721,811) (197,356) ------------ ------------ ------------ ------------ Net cash provided by (used in) investing activities 498,404 (5,348,559) (11,145,813) (11,163,680) ------------ ------------ ------------ ------------
Page 1 Exhibit 5
Six Months Ended March 31, Year Ended September 30, --------------------------- -------------------------- 2004 2003 2003 2002 ----------- ----------- ----------- ----------- Cash flows from financing activities: Net increase in deposits 567,739 1,646,296 4,046,775 8,160,632 Net (decrease) increase in short-term borrowed funds (1,200,000) 24,013 1,200,000 Increase in advance payments by borrowers for taxes and insurance 24,927 25,145 3,432 (16,656) ----------- ----------- ----------- ----------- Net cash (used in) provided by financing activities (607,334) 1,695,454 5,250,207 8,143,976 ----------- ----------- ----------- ----------- Net increase (decrease) in cash and cash equivalents 368,930 (3,378,139) (5,191,461) (2,078,128) Cash and cash equivalents at beginning of period 2,031,518 7,222,979 7,222,979 9,301,107 ----------- ----------- ----------- ----------- Cash and cash equivalents at end of period $ 2,400,448 $ 3,844,840 $ 2,031,518 $ 7,222,979 =========== =========== =========== =========== Supplemental Disclosures of Cash Flow Information: Cash paid for: Interest on deposits and borrowed funds $ 459,304 $ 640,672 $ 1,193,931 $ 1,450,906 =========== =========== =========== =========== Income taxes $ 253,900 $ 259,298 $ 566,798 $ 253,063 =========== =========== =========== =========== Supplemental Schedule of Noncash Investing Activities: Change in unrealized gain on securities available for sale, net of tax $ 74,555 $ (28,825) $ (143,157) $ 149,226 =========== =========== =========== ===========
Page 2 Exhibit 6 Consolidated Statements of Stockholder's Equity
Additional Accumulated Paid-in Unallocated Retained Other Common Stock Capital ESOP Shares Earnings Comprehensive Total ----------- ----------- ----------- ----------- ----------- ----------- Balance at September 30, 2002 $ 42,550 $ 1,674,209 $ (78,400) $ 4,849,934 $ 244,105 $ 6,732,398 Net income -- -- -- 559,116 -- 559,116 Amortization of ESOP shares -- 16,323 15,680 -- -- 32,003 Change in unrealized gain on securities available for sale, net of income taxes -- -- -- -- (143,157) (143,157) ----------- ----------- ----------- ----------- ----------- ----------- Balance at September 30, 2003 42,550 1,690,532 (62,720) 5,409,050 100,948 7,180,360 Net income (Unaudited) -- -- -- 238,509 -- 238,509 Amortization of ESOP shares (Unaudited) -- 11,574 7,840 -- -- 19,414 Change in unrealized gain on securities available for sale, net of income taxes (Unaudited) -- -- -- -- 74,555 74,555 Balance at March 31, 2004 $ 42,550 $ 1,702,106 $ (54,880) $ 5,647,559 $ 175,503 $ 7,512,838 =========== =========== =========== =========== =========== ===========
Exhibit 7 Selected Financial Data
Corporate Key Financial Data for the Most Recent Quarter ----------------------------------- -------------------------------------------------------------- Number Total Loans/ Loans/ Securities Deposits/ Borrowings/ of IPO Assets Deposits Assets Assets Assets Assets Ticker Short Name Exchange City State Offices Date ($000) (%) (%) (%) (%) (%) -------------------------------------------------------------------- -------------------------------------------------------------- Comparable Thrift Data --------- ALFC Atlantic Liberty Financial NASDAQ Brooklyn NY 2 10/23/2002 182,709 107.15 64.56 NA 60.24 23.64 CEBK Central Bancorp, Inc. NASDAQ Somerville MA 10 10/23/1986 507,883 112.95 69.87 NA 61.86 28.01 ESBK Elmira Savings Bank, FSB NASDAQ Elmira NY 6 03/01/1985 294,707 74.63 61.39 32.94 82.26 8.83 HIFS Hingham Institution for Savings NASDAQ Hingham MA 7 12/20/1988 526,060 117.45 73.94 16.70 62.96 28.52 LARL Laurel Capital Group, Inc. NASDAQ Allison Park PA 8 02/20/1987 301,251 68.81 56.58 25.37 82,22 7.17 LSBX LSB Corporation NASDAQ North Andover MA 6 05/02/1986 476,274 73.22 44.54 51.89 69.83 26.31 MFLR Mayflower Co-operative Bank NASDAQ Middleboro MA 5 12/23/1987 214,178 68.48 55.98 38.03 81.74 9.58 NBN Northeast Bancorp AMEX Auburn ME 12 08/19/1987 518,029 115.10 78.34 14.11 68.06 23.80 PHSB PHSB Financial Corp. NASDAQ Beaver Falls PA 10 07/10/1997 323,003 60.23 41.20 54.19 68.42 16.76 WSB Washington Savings Bank, F.S.B. (The) AMEX Bowie MD 5 08/03/1988 471,344 120.22 89.20 2.39 74.20 15.04 WVFC WVS Financial Corp. NASDAQ Pittsburgh PA 6 11/29/1993 400,180 46.40 17.89 80.31 38.56 53.09 ------------------------------- ----------------------------------- ------------------------------------------------------------- Average 383,238 87.69 59.41 35.10 67.40 21.89 Median 400,180 74.63 61.39 32.94 68.06 23.64 Maximum 526,060 120.22 89.20 80.31 82.26 53.09 Minimum 182,709 46.40 17.89 2.39 38.56 7.17 ROEB Roebling Financial Corp, MHC OTC BB Roebling NJ 3 10/02/1997 87,485 75.00 67.18 25.19 90.27 - Variance to the Comparable Median (312,695) 0.37 5.79 (7.75) 22.21 (23.64)
Page 1 of 5
Exhibit 7 Selected Financial Data Capital for the Most Recent Quarter Asset Quality for the Most Recent Quarter ---------------------------------------- ------------------------------------------------------ Tangible In- Core Equity Tangible Capital Equity Equity/ Tang Assets/ Tangible Reserves/ NPLs/ Reserves/ NPAs/ NPAs/ Reserves/ Reserves/ Assets Assets Equity Assets Assets Loans NPLs Assets Equity Loans NPAs + 90 Ticker Short Name (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) (%) ------------------------------ ------------------------------------------- ------------------------------------------------------ Comparable Thrift Data ALFC Atlantic Liberty Financial Corp 14.47 14.47 - NA 14.80 NA NA NA NA 0.52 NA CEBK Central Bancorp, Inc. 8.39 7.99 5.24 NA 9.10 - NM - - 1.01 NM ESBK Elmira Savings Bank, FSB 7.60 7.43 2.39 7.38 8.28 0.52 212.78 0.36 4.77 1.10 186.90 HIFS Hingham Institution for Savings 8.01 8.01 - NA 8.59 0.04 NM 0.03 0.41 0.78 612.10 LARL Laurel Capital Group, Inc. 9.13 7.99 13.65 7.70 9.80 1.01 115.85 0.58 6.37 1.17 115.06 LSBX LSB Corporation 11.96 11.96 - 11.63 12.84 0.05 NM 0.02 0.19 1.96 NM MFLR Mayflower Co-operative Bank 8.25 8.21 0.52 NA 8.93 - NM - - 1.23 NM MYST Mystic Financial, Inc. 6.47 6.47 - NA 7.12 0.71 131.20 0.50 7.73 0.94 131.20 NBN Northeast Bancorp 7.26 7.12 2.10 8.20 8.10 0.23 470.63 0.20 2.74 1.07 422.29 PHSB PHSB Financial Corp. 14.06 14.06 - NA 14.56 NA NA NA NA 1.19 NA WSB Washington Savings Bank, F.S.B. (The) 9.94 9.94 - 9.93 10.46 NA NA NA NA 0.55 NA WVFC WVS Financial Corp. 7.38 7.38 - 7.35 7.69 NA NA NA NA 1.72 NA ---------------------------- ------------------------------------------------------------------------------------------------------ Average 9.68 9.51 2.17 8.70 10.29 0.26 266.42 0.17 2.07 1.12 334.09 Median 8.39 8.01 - 7.95 9.10 0.05 212.78 0.03 0.41 1.10 304.60 Maximum 14.47 14.47 13.65 11.63 14.80 1.01 470.63 0.58 6.37 1.96 612.10 Minimum 7.26 7.12 - 7.35 7.69 - 115.85 - - 0.52 115.06 ROEB Roebling Financial Corp, Inc. (MHC) 8.59 8.59 - 8.24 9.15 0.20 407.50 0.14 1.60 0.83 407.50 Variance to the Comparable Median 0.20 0.58 - 0.29 0.05 0.15 194.72 0.11 1.19 (0.27) 102.91
Profitability for the Most Recent Quarter ----------------------------------------- Return on Return on Avg Assets Avg Equity Ticker Short Name (%) (%) ------------------------------ ----------------------------------------- Comparable Thrift Data ALFC Atlantic Liberty Financial Corp 0.92 6.11 CEBK Central Bancorp, Inc. 0.36 4.22 ESBK Elmira Savings Bank, FSB 0.85 10.91 HIFS Hingham Institution for Savings 1.12 13.06 LARL Laurel Capital Group, Inc. 0.57 6.32 LSBX LSB Corporation 1.95 17.11 MFLR Mayflower Co-operative Bank 0.82 9.71 NBN Northeast Bancorp 0.82 11.03 PHSB PHSB Financial Corp. 0.82 6.13 WSB Washington Savings Bank, F.S.B. (The) 2.42 23.58 WVFC WVS Financial Corp. 0.45 6.19 --------------------------------------------------------- Average 1.01 10.40 Median 0.82 9.71 Maximum 2.42 23.58 Minimum 0.36 4.22 ROEB Roebling Financial Corp, Inc. (MHC) 0.54 6.52 Variance to the Comparable Median (0.28) (3.19)
Page 2 of 5 Exhibit 7 Selected Financial Data
Income Statement for the Most Recent Quarter -------------------------------------------------------------------------------- Yield on Cost Net Net Noninterest Noninterest Ave Earn of Interest Interest Income/ Expense Efficiency Overhead Assets Funds Spread Margin Avg Assets Avg Assets Ratio Ratio Ticker Short Name (%) (%) (%) (%) (%) (%) (%) (%) --------------------------------------------------------------------------------------------------------------- Comparable Thrift Data ALFC Atlantic Liberty Financial Corp NA NA NA 4.09 0.35 2.67 62.83 59.49 CEBK Central Bancorp, Inc. NA NA NA 3.22 0.25 2.72 84.41 83.09 ESBK Elmira Savings Bank, FSB 5.46 2.09 3.37 3.67 0.79 2.95 68.26 61.11 HIFS Hingham Institution for Savings 5.34 2.11 3.23 3.50 0.29 1.84 50.43 46.20 LARL Laurel Capital Group, Inc. 4.65 2.32 2.33 2.59 0.45 2.08 67.40 61.41 LSBX LSB Corporation NA NA NA 2.86 0.42 2.29 71.58 67.32 MFLR Mayflower Co-operative Bank 5.13 NA NA 3.55 0.61 2.72 68.94 63.19 NBN Northeast Bancorp 5.94 NA NA 3.43 0.99 2.88 66.70 56.51 PHSB PHSB Financial Corp. NA NA NA 2.54 0.31 2.13 76.30 73.31 WSB Washington Savings Bank, F.S.B. (The) NA NA NA 4.86 1.82 2.46 39.16 15.73 WVFC WVS Financial Corp. NA NA NA 1.34 0.16 0.88 59.38 54.48 ------------------------------- -------------------------------------------------------------------------------- Average 5.30 2.17 2.98 3.24 0.59 2.33 65.04 58.35 Median 5.34 2.11 3.23 3.43 0.42 2.46 67.40 61.11 Maximum 5.94 2.32 3.37 4.86 1.82 2.95 84.41 83.09 Minimum 4.65 2.09 2.33 1.34 0.16 0.88 39.16 15.73 ROEB Roebling Financial Corp, Inc. (MHC) 5.08 1.34 3.74 3.98 0.51 3.30 77.05 73.92 Variance to the Comparable Median (0.26) (0.77) 0.51 0.55 0.09 0.84 9.65 12.81
Balance Sheet Growth for the Most Recent Quarter Market Data ---------------------- -------------------------------------------------------------- Asset Loan Deposit Publicly Tangible Growth Growth Growth Market Price Price Price Reported Publicly Rep Rate Rate Rate Value Per Share High Low Book Value Book Value Ticker Short Name (%) (%) (%) ($) ($) ($) ($) ($) ($) ------------------------------- ----------------------- --------------------------------------------------------------- Comparable Thrift Data ALFC Atlantic Liberty Financial Corp 56.76 15.20 8.24 33.00 19.62 20.15 16.80 15.72 15.72 CEBK Central Bancorp, Inc. 13.84 (1.97) 24.66 53.30 32.00 37.11 26.00 25.61 24.27 ESBK Elmira Savings Bank, FSB 14.13 (2.24) 17.10 33.50 30.00 33.35 27.55 21.90 21.38 HIFS Hingham Institution for Savings 29.92 21.47 43.10 85.40 41.01 42.50 40.00 20.26 20.26 LARL Laurel Capital Group, Inc. (1.95) 20.84 (1.81) 39.30 20.35 22.33 20.35 14.29 12.34 LSBX LSB Corporation (4.78) (10.09) 12.59 73.20 16.99 17.50 15.00 13.23 13.23 MFLR Mayflower Co-operative Bank 10.68 1.03 17.67 38.10 18.62 20.20 14.67 8.63 8.59 NBN Northeast Bancorp 16.95 9.25 13.86 48.10 18.95 19.48 18.80 14.85 14.54 PHSB PHSB Financial Corp. (21.87) (48.22) (24.98) 58.10 20.00 21.20 17.60 15.65 15.65 WSB Washington Savings Bank, F.S.B. (The) 60.57 52.35 77.59 83.00 10.44 10.55 8.76 6.41 6.41 WVFC WVS Financial Corp. (16.41) (8.59) (28.05) 42.80 17.27 18.95 17.00 11.83 11.83 ------------------------------------------------------------------------------------------------------------------------ Average 14.35 4.46 14.54 53.44 22.30 23.94 20.23 15.31 14.93 Median 13.84 1.03 13.86 48.10 19.62 20.20 17.60 14.85 14.54 Maximum 60.57 52.35 77.59 85.40 41.01 42.50 40.00 25.61 24.27 Minimum (21.87) (48.22) (28.05) 33.00 10.44 10.55 8.76 6.41 6.41 ROEB Roebling Financial Corp, Inc. (MHC) (0.59) 12.32 1.45 13.75 37.00 40.50 29.00 17.66 17.66 Variance to the Comparable Median (14.43) 11.29 (12.41) (35.30) 17.38 20.30 11.40 2.81 3.12
Page 3 of 5 Exhibit 7 Selected Financial Data
Dividends Current Pricing Data as of 8/02/04 Productivity ------------------ ------------------------------------------------------------------ -------------- Price/ Price/Tang LTM Price Publicly Publicly Current Dividend Price LTM Rep Rep Full Time Dividend Payout Price/ Core Price/ Core Book Book Price/ Equivalent Yield Ratio Earnings Earnings LTMs EPS EPS Value Value Assets Employees Ticker Short Name ($) (%) (x) (x) (x) (x) (%) (%) (%) LTM ---------------------------- ----------------- ----------------------------------------------------------------- -------------- Comparable Thrift Data ALFC Atlantic Liberty Financial Corp 1.43 25.84 18.90 18.90 22.00 22.00 124.80 124.80 18.05 NA CEBK Central Bancorp, Inc. 1.50 35.82 27.60 NA 23.90 NA 125.00 131.90 10.49 NA ESBK Elmira Savings Bank, FSB 2.30 31.83 13.20 14.60 13.80 15.70 137.00 140.40 10.41 93 HIFS Hingham Institution for Savings 1.76 32.85 15.50 15.50 14.80 14.90 202.40 202.40 16.22 84 LARL Laurel Capital Group, Inc. 3.93 86.96 23.10 23.90 22.10 22.40 142.40 164.90 13.01 63 LSBX LSB Corporation 3.06 36.96 8.00 NA 12.30 NA 128.40 128.40 15.36 NA MFLR Mayflower Co-operative Bank 2.15 44.44 22.20 NA 20.70 NA 215.80 216.90 17.79 NA NBN Northeast Bancorp 1.90 24.83 11.80 12.40 13.10 13.70 127.60 130.40 9.27 182 PHSB PHSB Financial Corp. 4.00 114.29 20.00 35.70 19.10 39.20 127.80 127.80 17.97 NA WSB Washington Savings Bank, F.S.B. (The) 2.30 20.56 7.90 7.90 9.80 9.80 162.90 162.90 16.18 NA WVFC WVS Financial Corp. 3.71 71.11 14.90 24.00 19.20 18.40 146.00 146.00 10.78 NA ---------------------------- -------------------------------------------------------------------------------------------------- Average 2.55 47.77 16.65 19.11 17.35 19.51 149.10 152.44 14.14 106 Median 2.30 35.82 15.50 17.20 19.10 17.05 137.00 140.40 15.36 89 Maximum 4.00 114.29 27.60 35.70 23.90 39.20 205.80 216.90 18.05 182 Minimum 1.43 20.56 7.90 7.90 9.80 9.80 124.80 124.80 9.27 63 ROEB Roebling Financial Corp, Inc. (MHC) - - NA NA NA NA NA NA NA NA Variance to the Comparable Median (2.30) (35.82) NA NA NA NA NA NA NA NA
Page 4 of 5 Exhibit 7 Selected Financial Data
Income -------------------------------------------------------------------------------- Net Core Core Net Core Core Income Income EPS EPS Income Income EPS EPS Ticker Short Name MRQ MRQ MRQ MRQ LTM LTM LTM LTM --------------------------------- -------------------------------------------------------------------------------- Comparable Thrift Data ALFC Atlantic Liberty Financial Corp 405 405 0.26 0.26 1,419 1,419 0.89 0.89 CEBK Central Bancorp, Inc. 454 NA 0.29 NA 2,102 NA 1.34 NA ESBK Elmira Savings Bank, FSB 607 589 0.53 0.51 2,477 2,200 2.15 1.91 HIFS Hingham Institution for Savings 1,392 1,392 0.66 0.66 5,822 5,769 2.77 2.74 LARL Laurel Capital Group, Inc. 433 419 0.22 0.21 1,812 1,789 0.92 0.91 LSBX LSB Corporation 2,357 NA 0.53 NA 6,094 NA 1.38 NA MFLR Mayflower Co-operative Bank 432 NA 0.21 NA 1,900 NA 0.90 NA NBN Northeast Bancorp 1,020 975 0.40 0.38 3,786 3,609 1.45 1.38 PHSB PHSB Financial Corp. 704 395 0.25 0.14 2,961 1,440 1.05 0.51 WSB Washington Savings Bank, F.S.B. (The) 2,660 2,660 0.33 0.33 8,570 8,497 1.07 1.06 WVFC WVS Financial Corp. 464 464 0.18 0.18 2,422 2,422 0.94 0.94 ------------------------------- ------------------------------------------------------------------------------- Average 993 912 0.33 0.33 3,579 3,393 1.35 1.29 Median 607 527 0.30 0.30 2,477 2,311 1.07 1.00 Maximum 2,660 2,660 0.66 0.66 8,570 8,497 2.77 2.74 Minimum 405 395 0.14 0.14 1,419 1,419 0.89 0.51 ROEB Roebling Financial Corp, Inc. (MHC) 121 121 0.28 0.28 537 537 1.27 1.27 Variance to the Comparable Median (486) (406) (0.01) (0.02) (1,774) (1,774) 0.20 0.27
Page 5 of 5 Exhibit 8 Industry Multiples Pricing Data as of August 2, 2004
------------------------------------------------------- Current Price in Relation to ------------------------------------------------------- LTM Current Current LTM Tangible Current Dividend Stock Market Core LTM Core Book Book Dividend Payout Price Value Earnings EPS EPS EPS Value Value Assets Yield Ratio Ticker Short Name ($) ($M) (x) (x) (x) (x) (%) (%) (%) (%) (%) ----------------------------------------------------------------------------------------------------------------------------------- AABC Access Anytime Bancorp, Inc. 13.90 18.70 11.20 26.70 16.60 15.90 119.70 132.80 9.12 0.00 0.00 ABCW Anchor BanCorp Wisconsin Inc. 25.68 590.60 14.00 14.70 13.50 14.30 191.90 205.90 15.38 1.95 23.95 AF Astoria Financial Corporation 34.36 2,639.70 11.00 11.00 13.00 13.00 180.80 208.90 11.10 2.91 36.60 AFBC Advance Financial Bancorp 18.20 25.50 12.00 12.00 9.40 10.60 118.90 168.20 7.97 2.20 20.73 ALFC Atlantic Liberty Financial Corp 19.62 33.00 18.90 18.90 22.00 22.00 124.80 124.80 18.05 1.43 25.84 AMFC AMB Financial Corp. 16.00 15.60 21.10 21.10 16.00 17.20 121.60 121.60 10.11 1.50 17.00 ASBI Ameriana Bancorp 14.30 45.00 23.80 23.80 21.30 NM 114.20 116.30 10.54 4.48 95.52 ASBP ASB Financial Corp. 23.25 38.80 18.20 22.40 19.70 20.90 223.80 223.80 23.84 2.58 48.31 BBX BankAtlantic Bancorp, Inc. 18.61 1,021.80 16.00 16.00 15.60 19.90 252.50 315.40 20.48 0.71 11.09 BFCF BFC Financial Corporation 9.92 211.10 13.10 NM 22.60 51.70 228.10 NM 4.16 0.00 0.00 BFD BostonFed Bancorp, Inc. 39.18 177.90 57.60 96.10 32.10 35.20 185.50 225.90 10.63 1.63 52.46 BHL Berkshire Hills Bancorp, Inc. 36.96 217.00 19.70 NA 20.40 NA 177.80 186.60 16.74 1.30 26.52 BKMU Bank Mutual Corporation 11.12 869.90 30.90 32.50 33.70 34.20 122.60 133.40 27.98 1.80 50.00 BKUNA BankUnited Financial Corporation 27.72 831.80 16.90 17.00 18.60 18.60 182.60 194.70 10.08 0.00 0.00 BRBI Blue River Bancshares, Inc. 5.60 19.10 20.00 27.90 43.10 109.20 114.80 144.10 9.44 0.00 0.00 BRKL Brookline Bancorp, Inc. 14.37 848.90 44.90 47.50 47.90 53.00 142.40 142.40 52.74 2.37 246.67 BYFC Broadway Financial Corporation 11.75 17.60 10.90 10.80 12.80 12.70 138.60 138.60 6.99 1.70 17.66 CAFI Camco Financial Corporation 14.51 106.80 17.30 NA 22.30 NA 116.50 120.30 9.99 4.00 89.23 CASH First Midwest Financial, Inc. 22.84 57.00 17.30 15.20 13.60 16.20 118.20 127.20 7.51 2.28 30.95 CCBI Commercial Capital Bancorp Inc. 21.85 1,160.80 19.50 20.50 25.40 26.80 199.20 529.70 24.47 0.73 4.65 CEBK Central Bancorp, Inc. 32.00 53.30 27.60 NA 23.90 NA 125.00 131.90 10.49 1.50 35.82 CFB Commercial Federal Corporation 26.63 1,061.80 14.80 6.30 14.00 9.90 141.40 185.00 9.07 2.03 25.53 CFCP Coastal Financial Corporation 14.95 215.50 14.40 13.40 16.40 15.80 275.80 275.80 16.84 1.34 21.98 CFFC Community Financial Corporation 19.45 40.40 11.90 12.80 12.40 12.50 138.10 138.30 12.00 2.06 25.48 CFSB Citizens First Financial Corp. 23.00 34.50 12.50 NA 23.50 NA 102.40 102.40 10.31 1.74 40.82 CFSL Chesterfield Financial Corp. 30.91 119.80 NM 51.50 56.20 51.50 160.20 161.20 33.18 1.04 58.18 CIBI Community Investors Bancorp, Inc.13.50 14.70 19.90 19.90 16.90 16.90 110.50 110.50 12.18 2.67 43.12 CITZ CFS Bancorp, Inc. 13.18 162.00 NM 54.80 50.70 55.80 104.90 NA 11.01 3.34 169.23 CKFB CKF Bancorp, Inc. 18.50 27.20 14.50 14.50 15.40 15.40 172.40 NA NA 3.24 45.00 CNY Carver Bancorp, Inc. 19.00 43.50 11.30 12.60 10.20 10.80 103.80 103.80 7.91 1.47 11.83 CSBC Citizens South Banking Corporation 13.07 98.30 27.20 31.10 36.30 52.30 137.00 NA 19.63 1.99 69.44 CTZN Citizens First Bancorp, Inc. 22.70 193.40 23.70 27.90 16.10 16.50 118.80 129.90 14.68 1.59 25.53 DCOM Dime Community Bancshares, Inc. 16.56 617.80 12.20 12.20 12.30 12.70 229.40 289.70 17.81 3.38 39.01 DFBS DutchFork Bancshares, Inc. 39.30 44.30 22.90 81.10 13.40 25.40 142.30 142.30 21.37 0.00 0.00 DSL Downey Financial Corp. 54.11 1,513.40 13.70 9.10 16.90 14.70 160.60 161.10 10.64 0.74 12.15 EFC EFC Bancorp, Inc. 26.15 121.70 19.20 21.00 16.70 17.80 152.70 152.70 12.80 2.33 37.90 ESBF ESB Financial Corporation 12.33 132.10 14.00 14.00 14.20 15.80 148.40 162.10 9.70 3.24 45.98 ESBK Elmira Savings Bank, FSB 30.00 33.50 13.20 14.60 13.80 15.70 137.00 140.40 10.41 2.30 31.83 EVRT EverTrust Financial Group, Inc. 25.46 175.50 22.70 20.60 26.50 26.60 192.40 192.40 22.82 1.73 45.83 FBC Flagstar Bancorp, Inc. 20.10 1,228.90 7.70 7.70 6.30 6.30 173.10 173.10 10.27 4.98 24.92 FBEI First Bancorp of Indiana, Inc. 19.86 32.30 NM 29.20 NM 23.00 105.50 113.10 13.62 2.92 287.50 FBNW FirstBank NW Corp. 27.14 80.50 13.10 13.10 13.20 13.20 115.50 NA 10.98 2.51 32.04 FBSI First Bancshares, Inc. 19.81 32.80 17.10 18.10 14.70 15.60 118.60 120.70 12.24 0.81 11.85 FBTC First BancTrust Corporation 11.80 29.50 29.50 33.00 16.60 17.80 108.70 108.70 12.89 2.03 29.58 FBTX Franklin Bank Corp. 16.38 347.70 16.40 16.40 27.80 28.70 136.70 178.90 11.32 0.00 0.00 FCAP First Capital, Inc. 20.99 59.20 16.90 17.50 16.70 16.00 133.20 153.90 14.27 2.86 46.83 FCFL First Community Bank Corporation of America 20.50 43.40 NA 25.60 NA 24.80 197.80 202.00 19.84 0.00 NA FDEF First Defiance Financial Corp. 24.11 152.30 12.30 13.10 12.70 13.40 122.40 144.90 14.19 3.32 39.47 FDT Federal Trust Corporation 7.75 50.60 14.90 16.10 16.50 18.30 184.10 184.10 10.48 1.03 19.15 FED FirstFed Financial Corp. 45.97 754.20 12.00 12.00 12.30 12.30 171.60 174.10 13.65 0.00 0.00 FFBH First Federal Bancshares of Arkansas, Inc. 20.00 106.30 13.90 15.60 14.90 14.90 140.70 140.70 15.25 2.00 28.36 Page 1 of 6
Exhibit 8 Industry Multiples Pricing Data as of August 2, 2004
------------------------------------------------------- Current Price in Relation to ------------------------------------------------------- LTM Current Current LTM Tangible Current Dividend Stock Market Core LTM Core Book Book Dividend Payout Price Value Earnings EPS EPS EPS Value Value Assets Yield Ratio Ticker Short Name ($) ($M) (x) (x) (x) (x) (%) (%) (%) (%) (%) ----------------------------------------------------------------------------------------------------------------------------------- FFBI First Federal Bancshares, Inc. 26.60 31.90 44.30 40.00 21.80 31.30 115.70 120.30 14.91 1.65 36.07 FFBZ First Federal Bancorp, Inc. 8.87 29.20 18.50 18.50 16.40 16.40 130.40 130.40 11.58 2.71 43.52 FFCH First Financial Holdings, Inc. 29.08 360.10 14.00 14.90 14.80 15.70 220.60 256.10 14.69 3.03 44.90 FFDF FFD Financial Corporation 15.00 18.10 26.80 26.80 22.10 22.10 105.80 105.80 13.26 2.80 61.76 FFED Fidelity Federal Bancorp 1.55 17.10 38.80 38.80 NM 101.80 109.20 109.20 8.82 0.00 0.00 FFFD North Central Bancshares, Inc. 36.60 57.20 10.10 10.10 11.00 11.00 138.70 157.80 12.70 2.73 27.71 FFFL Fidelity Bankshares, Inc. 34.40 520.50 22.60 25.50 26.70 26.00 275.20 278.40 15.30 1.16 31.01 FFHH FSF Financial Corp. 34.62 82.60 21.10 21.10 19.60 20.40 157.20 173.30 15.89 4.04 76.27 FFHS First Franklin Corporation 19.00 31.30 29.70 36.00 25.00 30.90 128.60 128.60 11.27 1.68 42.11 FFIC Flushing Financial Corporation 17.66 339.60 13.00 13.00 14.00 14.00 226.40 232.50 16.73 2.04 25.13 FFLC FFLC Bancorp, Inc. 26.36 142.50 15.00 15.00 15.90 15.90 176.70 176.70 14.07 1.97 31.33 FFSX First Federal Bankshares, Inc. 22.00 82.30 17.70 17.70 14.70 14.60 115.20 NA 13.37 1.82 24.67 FFWC FFW Corporation 22.10 28.40 12.90 12.90 12.00 12.10 125.60 NA 11.84 2.90 34.59 FIFG 1st Independence Financial Group, Inc. 19.00 36.40 43.20 43.20 23.80 24.20 109.10 112.20 12.95 3.16 75.00 FKFS First Keystone Financial, Inc. 22.98 44.30 18.00 18.10 17.70 32.50 157.10 157.10 7.83 1.91 33.08 FKKY Frankfort First Bancorp, Inc. 24.25 30.70 31.90 31.90 31.50 31.50 173.70 173.70 22.26 4.62 145.45 FMCO FMS Financial Corporation 16.61 108.00 13.00 13.00 15.00 15.20 165.20 173.00 8.71 0.72 10.81 FMSB First Mutual Bancshares, Inc. 25.33 133.70 15.80 15.80 15.70 16.00 244.00 244.00 13.87 1.42 22.19 FNFG First Niagara Financial Group, Inc. 12.30 1,033.20 19.20 19.10 20.50 19.70 105.40 168.90 19.41 2.60 46.67 FNFI First Niles Financial, Inc. 19.44 26.80 27.00 32.00 24.60 29.10 173.70 173.70 27.51 3.09 74.68 FPFC First Place Financial Corp. 17.74 268.60 40.30 20.90 16.30 15.10 120.40 180.40 11.95 3.16 51.38 FPTB First PacTrust Bancorp, Inc. 22.50 105.70 17.10 17.30 21.80 21.90 121.10 121.10 14.25 1.78 33.01 FSBI Fidelity Bancorp, Inc. 20.45 54.60 12.80 13.30 12.90 14.40 136.90 147.50 8.58 2.35 28.31 FTFC First Federal Capital Corp 28.49 641.50 15.50 14.40 17.10 16.70 225.60 330.70 17.41 2.11 34.73 GAFC Greater Atlantic Financial Corp. 5.85 17.60 NM NM NM NM 92.70 99.50 3.28 0.00 0.00 GCFC Central Federal Corporation 11.95 24.40 NM NM NM NM 130.60 130.60 18.90 3.01 NM GDW Golden West Financial Corporation 108.16 16,521.40 13.30 13.40 14.10 14.40 251.70 251.70 17.74 0.37 5.21 GPT GreenPoint Financial Corp. 41.23 5,437.70 10.00 10.10 11.00 11.10 252.20 315.70 19.07 2.91 30.48 GSLA GS Financial Corp. 18.01 23.40 56.30 50.00 40.90 NM 76.90 76.90 10.73 2.22 90.91 GTPS Great American Bancorp, Inc. 26.75 19.70 19.70 19.70 18.60 18.60 115.90 119.30 12.50 1.64 30.56 GUPB GFSB Bancorp, Inc. 21.00 24.10 19.40 19.40 15.20 15.20 129.90 129.90 10.08 2.38 35.14 HARB Harbor Florida Bancshares, Inc. 29.25 695.80 16.60 18.20 17.10 17.90 250.40 254.10 26.84 2.19 36.55 HARL Harleysville Savings Financial Corporation 26.50 60.70 13.80 14.00 13.10 14.00 140.40 140.40 8.58 3.02 39.41 HCBB HCB Bancshares, Inc. 18.40 26.30 NM NM 52.60 54.00 93.30 93.30 11.67 1.96 102.86 HCFC Home City Financial Corporation 16.75 13.80 19.00 19.40 20.40 20.50 111.50 114.20 9.01 2.63 53.66 HFBC HopFed Bancorp, Inc. 16.65 60.40 14.90 14.90 15.30 16.40 130.30 NA 10.38 2.88 44.04 HFFC HF Financial Corp. 16.40 57.90 8.90 8.90 11.50 11.50 112.20 124.30 6.84 2.62 30.02 HFWA Heritage Financial Corporation 20.65 121.90 13.60 13.60 14.30 14.30 214.20 242.50 18.32 3.10 42.36 HIFS Hingham Institution for Savings 41.01 85.40 15.50 15.50 14.80 14.90 202.40 202.40 16.22 1.76 32.85 HLFC Home Loan Financial Corporation 19.20 32.30 NM 71.10 17.30 16.00 142.60 142.60 20.62 4.01 77.25 HMNF HMN Financial, Inc. 25.99 115.80 10.50 10.50 10.70 11.00 142.80 150.60 12.67 3.39 33.74 HRBT Hudson River Bancorp, Inc. 17.64 536.80 14.70 NA 15.60 NA 188.50 249.90 20.58 2.04 28.76 HRZB Horizon Financial Corp. 19.50 200.90 15.70 16.80 16.30 17.10 186.80 187.70 22.90 2.67 41.67 HWEN Home Financial Bancorp 5.60 7.60 35.00 10.20 22.40 16.10 107.50 107.50 12.72 2.14 48.00 HWFG Harrington West Financial Group, Inc. 16.61 87.50 11.90 13.00 11.50 12.70 177.30 197.50 8.69 2.41 59.77 ICBC Independence Community Bank Corp. 37.30 3,110.50 12.60 12.30 13.40 13.50 144.70 330.70 17.26 2.57 31.90 IFSB Independence Federal Savings Bank 20.30 31.50 NM NM NM NM 157.70 157.70 15.65 0.00 0.00 JFBI Jefferson Bancshares, Inc. 12.73 106.80 24.50 24.50 NM 27.80 113.00 113.00 34.63 1.26 116.67 KNBT KNBT Bancorp, Inc. 16.29 470.00 27.20 27.20 NA NA 124.90 NA 21.51 1.23 NA LARL Laurel Capital Group, Inc. 20.35 39.30 23.10 23.90 22.10 22.40 142.40 164.90 13.01 3.93 86.96 LNCB Lincoln Bancorp 18.50 82.00 20.10 20.10 22.30 21.70 101.80 104.60 14.10 2.81 61.45 Page 2 of 6
Exhibit 8 Industry Multiples Pricing Data as of August 2, 2004
------------------------------------------------------- Current Price in Relation to ------------------------------------------------------- LTM Current Current LTM Tangible Current Dividend Stock Market Core LTM Core Book Book Dividend Payout Price Value Earnings EPS EPS EPS Value Value Assets Yield Ratio Ticker Short Name ($) ($M) (x) (x) (x) (x) (%) (%) (%) (%) (%) ----------------------------------------------------------------------------------------------------------------------------------- LSBI LSB Financial Corp. 22.30 30.40 10.30 10.40 10.30 10.30 103.50 103.50 8.73 2.69 26.04 LSBX LSB Corporation 16.99 73.20 8.00 NA 12.30 NA 128.40 128.40 15.36 3.06 36.96 MAFB MAF Bancorp, Inc. 40.10 1,310.00 13.00 13.00 12.80 13.20 144.60 207.60 13.97 2.09 31.63 MASB MASSBANK Corp. 34.25 151.80 22.00 29.40 20.20 23.40 139.70 141.20 15.35 2.92 57.65 MCBF Monarch Community Bancorp, Inc. 14.23 38.60 NM 88.90 NM 74.80 91.20 91.20 16.68 1.41 105.26 MFBC MFB Corp. 29.00 38.50 16.50 14.80 14.70 14.30 107.90 107.90 9.01 1.66 23.74 MFLR Mayflower Co-operative Bank 18.62 38.10 22.20 NA 20.70 NA 215.80 216.90 17.79 2.15 44.44 MFSF MutualFirst Financial, Inc. 22.21 109.90 15.00 NA 15.00 NA 119.20 120.40 13.43 2.16 30.41 MTXC Matrix Bancorp, Inc. 11.25 73.40 4.90 NA 17.90 NA 98.90 98.90 4.22 0.00 0.00 MYST Mystic Financial, Inc. 38.25 60.10 23.30 23.00 31.40 35.60 210.90 210.90 12.79 1.20 35.25 NABC NewAlliance Bancshares, Inc. 13.94 1,591.40 NM NM NA NA 113.40 175.40 24.89 1.15 NA NASB NASB Financial, Inc. 37.04 313.30 11.00 11.80 12.10 12.40 237.40 243.40 23.50 2.16 47.54 NBN Northeast Bancorp 18.95 48.10 11.80 12.40 13.10 13.70 127.60 130.40 9.27 1.90 24.83 NBSI North Bancshares, Inc. 22.50 25.80 NM NM NM 148.40 195.10 195.10 19.27 1.42 200.00 NDE IndyMac Bancorp Inc. 33.80 2,070.10 22.20 NA 12.50 NA 174.70 179.70 13.29 3.79 39.63 NEIB Northeast Indiana Bancorp, Inc. 21.60 31.70 18.00 18.00 19.00 19.20 119.50 119.50 14.08 2.59 49.12 NEPF Northeast Pennsylvania Financial Corp. 16.93 70.60 16.90 21.60 NM NM 123.00 150.80 8.02 1.42 NM NHTB New Hampshire Thrift Bancshares, Inc. 29.21 60.60 12.20 12.20 10.10 10.60 147.90 NA 10.02 3.08 29.69 NMIL NewMil Bancorp, Inc. 27.88 117.30 14.50 NA 15.10 NA 220.60 263.10 16.05 2.44 34.59 NTBK NetBank, Inc. 10.68 500.80 14.80 14.80 11.70 12.30 115.80 138.20 9.63 0.75 8.79 NYB New York Community Bancorp, Inc. 19.30 5,104.70 30.20 8.90 12.70 10.80 164.80 503.70 20.80 5.18 59.05 OCFC OceanFirst Financial Corp. 23.10 308.20 18.10 16.50 16.30 15.80 224.30 226.70 17.46 3.46 56.34 PBCI Pamrapo Bancorp, Inc. 22.22 110.50 14.20 14.20 13.90 13.90 208.10 208.10 17.17 3.78 51.25 PBCP Provident Bancorp, Inc. 10.84 429.70 27.10 29.10 41.70 46.50 125.50 158.90 24.12 1.48 57.23 PBNC PFS Bancorp, Inc. 21.80 32.10 36.30 34.10 35.70 35.70 118.80 118.80 26.49 1.38 49.18 PCBI Peoples Community Bancorp, Inc. 23.98 93.20 23.10 23.10 17.60 21.00 123.20 138.10 7.09 2.50 11.03 PEDE Great Pee Dee Bancorp, Inc. 15.63 28.30 23.00 NA 21.40 NA 108.70 113.30 18.11 3.97 84.93 PFB PFF Bancorp, Inc. 36.02 604.60 14.10 15.40 14.30 15.00 187.10 187.90 16.59 2.22 28.57 PFDC Peoples Bancorp 22.45 75.70 17.00 17.70 15.80 14.80 118.00 123.50 15.25 3.03 47.89 PFED Park Bancorp, Inc. 30.75 35.40 16.00 NA 13.90 NA 110.00 110.00 12.14 2.34 28.51 PFS Provident Financial Services, Inc. 17.66 1,388.10 27.60 28.30 27.60 28.60 130.00 NA 24.69 1.36 35.94 PFSB PennFed Financial Services, Inc. 31.79 215.80 19.90 18.60 19.00 18.70 182.30 184.40 11.35 1.26 23.95 PFSL Pocahontas Bancorp, Inc. 17.07 78.00 21.30 28.10 13.90 19.50 157.00 227.40 10.94 1.87 26.02 PHSB PHSB Financial Corp. 20.00 58.10 20.00 35.70 19.10 39.20 127.80 127.80 17.97 4.00 114.29 PPBI Pacific Premier Bancorp, Inc. 11.00 68.20 13.10 13.10 10.40 12.10 164.70 164.70 16.09 0.00 0.00 PROV Provident Financial Holdings, Inc. 23.00 163.10 9.60 9.60 11.00 11.00 148.30 148.50 12.36 1.74 17.55 PSFC Peoples-Sidney Financial Corporation 16.67 23.90 NM 92.60 NM 24.50 136.90 136.90 17.46 3.36 382.35 PULB Pulaski Financial Corp. 17.31 94.80 17.30 17.30 17.70 19.30 245.50 249.10 16.73 2.08 27.55 PVFC PVF Capital Corp. 16.29 104.10 18.50 22.60 15.40 14.00 167.10 167.10 14.03 1.82 27.92 PVSA Parkvale Financial Corporation 26.16 146.00 16.80 19.30 14.80 15.90 139.50 156.00 9.05 3.06 42.94 QCBC Quaker City Bancorp, Inc. 54.81 344.30 26.40 22.20 17.50 17.00 225.90 226.30 18.40 1.46 25.56 RIVR River Valley Bancorp 21.33 34.60 16.20 NA 14.10 NA 156.60 156.80 13.39 3.38 44.37 RPFG Rainier Pacific Financial Group, Inc. 16.60 140.10 34.60 34.60 NA NA 118.90 119.20 17.05 1.20 NA RVSB Riverview Bancorp, Inc. 20.75 103.50 11.50 15.30 13.70 14.80 150.00 176.40 19.28 2.99 38.08 SFFS Sound Federal Bancorp, Inc. 13.04 163.70 27.20 27.20 25.60 25.60 130.90 147.40 17.90 1.84 47.06 SMBC Southern Missouri Bancorp, Inc. 15.50 35.70 12.10 11.50 12.60 12.60 134.60 NA 11.20 2.32 29.27 SOBI Sobieski Bancorp, Inc. 6.75 4.60 NM NM NM NM 97.80 97.80 4.20 0.00 NM SOV Sovereign Bancorp, Inc. 21.71 6,724.60 12.90 13.00 14.50 15.00 174.20 292.00 13.65 0.55 7.33 SSFC South Street Financial Corp. 9.98 30.70 35.60 35.60 26.30 26.30 119.80 119.80 14.40 4.01 105.26 STBI Sturgis Bancorp, Inc. 14.15 39.80 25.30 25.30 19.40 17.70 135.60 165.00 13.52 2.54 49.32 STSA Sterling Financial Corporation 31.86 720.50 13.70 13.70 14.80 14.50 176.50 278.00 11.51 0.00 0.00 Page 3 of 6
Exhibit 8 Industry Multiples Pricing Data as of August 2, 2004
------------------------------------------------------- Current Price in Relation to ------------------------------------------------------- LTM Current Current LTM Tangible Current Dividend Stock Market Core LTM Core Book Book Dividend Payout Price Value Earnings EPS EPS EPS Value Value Assets Yield Ratio Ticker Short Name ($) ($M) (x) (x) (x) (x) (%) (%) (%) (%) (%) ----------------------------------------------------------------------------------------------------------------------------------- SVBI Severn Bancorp, Inc. 31.70 131.80 10.20 10.90 11.00 11.40 255.60 257.30 22.02 1.26 13.15 SYNF Synergy Financial Group, Inc. 10.01 124.70 31.30 NA 30.30 NA 119.40 120.20 15.58 1.60 12.12 SZB SouthFirst Bancshares, Inc. 16.00 11.50 NM NM NM NM 102.20 107.50 8.30 3.75 NM THRD TF Financial Corporation 26.73 77.20 11.50 11.50 NM NM 124.90 135.90 11.45 2.54 NM TONE TierOne Corporation 21.09 295.20 16.50 17.10 17.00 17.90 112.00 112.00 13.09 0.95 8.06 TRST TrustCo Bank Corp NY 12.63 937.00 16.60 19.80 17.30 20.40 436.60 437.70 32.89 4.75 82.19 TSBK Timberland Bancorp, Inc. 22.50 87.60 14.40 14.40 15.50 14.80 122.00 122.00 20.01 2.67 39.31 TSH Teche Holding Co. 38.50 87.60 16.00 16.80 15.60 15.90 151.00 151.00 15.09 2.08 29.96 UCBC Union Community Bancorp 18.20 36.20 21.70 21.70 17.80 17.80 106.70 NA 13.83 3.30 58.82 UCFC United Community Financial Corp. 11.31 352.30 16.60 17.30 16.40 17.30 144.30 169.90 16.14 2.65 43.48 UPFC United PanAm Financial Corp. 17.79 287.60 15.30 NA 21.70 NA NA NA NA 0.00 0.00 UTBI United Tennessee Bankshares, Inc. 16.80 20.70 13.10 13.10 10.80 11.20 116.50 121.80 17.56 2.14 23.23 WAYN Wayne Savings Bancshares, Inc. 16.20 61.50 31.20 19.50 24.90 22.60 141.10 141.10 16.66 2.96 73.85 WEFC Wells Financial Corp. 25.47 29.60 15.90 15.90 9.50 9.50 104.70 104.70 13.07 3.46 32.09 WES Westcorp 41.55 2,153.70 10.00 NA 12.60 NA 175.70 175.80 14.36 1.35 16.31 WFI Winton Financial Corporation 15.06 69.40 14.50 16.20 15.40 16.40 150.90 151.10 12.52 2.99 44.90 WFSL Washington Federal, Inc. 25.21 1,977.60 14.30 14.20 14.70 14.60 180.30 190.60 27.15 3.33 47.09 WGBC Willow Grove Bancorp, Inc. 16.32 161.30 25.50 27.00 26.30 28.80 151.50 152.90 17.06 2.70 64.52 WM Washington Mutual, Inc. 38.55 33,393.80 17.50 18.50 10.30 13.60 164.00 239.40 11.99 4.57 45.09 WOFC Western Ohio Financial Corporation 33.30 60.30 30.80 30.30 26.40 25.80 132.40 132.40 14.72 3.00 79.37 WRO Woronoco Bancorp, Inc. 35.90 131.90 23.60 23.60 22.70 23.20 167.50 171.50 14.95 2.23 48.10 WSB Washington Savings Bank, F.S.B. (10.44) 83.00 7.90 7.90 9.80 9.80 162.90 162.90 16.18 2.30 20.56 WSBI Warwick Community Bancorp, Inc. 31.88 144.20 NM NM 47.60 50.60 191.00 197.20 19.21 1.88 89.55 WSFS WSFS Financial Corporation 50.19 352.10 15.30 15.30 16.10 16.70 198.10 NA 14.67 0.48 7.07 WVFC WVS Financial Corp. 17.27 42.80 14.90 24.00 19.20 18.40 146.00 146.00 10.78 3.71 71.11 WYPT Waypoint Financial Corp. 27.40 915.20 22.80 24.60 26.60 30.80 231.00 244.10 16.81 2.04 52.43 Page 4 of 6
Exhibit 8 Industry Multiples Pricing Data as of August 2, 2004
------------------------------------------------------- Current Price in Relation to ------------------------------------------------------- LTM Current Current LTM Tangible Current Dividend Stock Market Core LTM Core Book Book Dividend Payout Price Value Earnings EPS EPS EPS Value Value Assets Yield Ratio Ticker Short Name ($) ($M) (x) (x) (x) (x) (%) (%) (%) (%) (%) ----------------------------------------------------------------------------------------------------------------------------------- All Fully Converted Average 22.53 642.94 19.03 21.96 18.85 22.31 153.14 171.25 14.94 2.15 44.96 All Fully Converted Median 20.30 87.50 16.60 17.60 16.30 16.45 140.05 153.40 14.03 2.15 35.20 All Mutual Holding Companies ALLB Greater Delaware Valley Savings Bank, MHC 27.91 96.10 34.90 34.90 39.30 42.30 267.70 267.70 25.28 1.29 50.70 BCSB BCSB Bankcorp, Inc. (MHC) 14.00 82.60 NM 27.80 NM 182.90 180.20 191.50 11.30 3.57 625.00 CFFN Capitol Federal Financial (MHC) 32.34 2,386.50 62.20 62.20 NM 95.10 238.10 238.10 27.32 6.18 826.47 CHEV Cheviot Financial Corp. (MHC) 11.20 111.10 46.70 46.70 NA NA 145.00 145.00 39.85 1.79 NA CHFN Charter Financial Corp. (MHC) 31.97 621.10 NM 81.00 NM 96.30 237.90 243.50 58.15 3.13 262.50 CSBK Clifton Savings Bancorp, Inc. (MHC) 11.45 349.60 NA NA NA NA 174.90 174.90 47.09 1.05 NA FFFS First Federal Financial Services, Inc. (MHC) 12.50 49.00 NA NA NA NA NA NA NA 0.00 NA GCBC Greene County Bancorp Inc. (MHC) 32.90 67.60 22.90 23.70 23.30 23.40 222.90 222.90 23.36 2.55 58.16 GOV Gouverneur Bancorp Inc. (MHC) 12.47 28.50 31.20 42.10 37.80 40.20 159.80 159.80 29.67 2.09 78.79 HCBK Hudson City Bancorp, Inc. (MHC) 34.88 6,528.00 27.30 28.10 29.80 31.40 485.10 485.10 33.45 2.06 56.41 JXSB Jacksonville Bancorp, Inc. (MHC) 14.85 29.00 30.90 45.20 43.70 77.30 138.10 161.80 10.93 2.02 88.24 KFED K-Fed Bancorp (MHC) 13.16 191.50 NA NA NA NA 216.90 216.90 28.53 0.00 NA NWSB Northwest Bancorp, Inc. (MHC) 21.29 1,021.10 20.50 20.80 20.50 22.00 204.30 285.40 17.68 2.25 40.38 ONFC Oneida Financial Corp. (MHC) 10.97 82.10 22.90 21.50 28.10 31.60 168.30 231.40 19.07 3.46 96.59 PBCT People's Bank (MHC) 31.63 2,963.70 29.30 NA 16.70 NA 256.30 283.70 27.81 3.67 58.20 PBHC Pathfinder Bancorp, Inc. (MHC) 15.66 38.30 21.80 43.60 27.00 30.50 176.40 222.80 12.97 2.55 68.97 PRTRD Partners Trust Financial Group, In9.95 477.80 24.90 21.50 21.20 20.40 155.70 NA 20.61 2.47 48.00 ROME Rome Bancorp, Inc. (MHC) 28.85 122.10 45.10 47.50 NM 67.80 343.50 343.50 46.02 2.08 120.70 WCFB Webster City Federal Bancorp (MHC) 13.50 50.90 42.20 42.20 43.60 43.60 223.70 224.80 48.36 5.04 219.35 WFD Westfield Financial Inc. (MHC) 20.95 200.20 32.70 38.70 37.40 43.10 171.70 171.70 25.36 1.91 44.64 All MHC's Average 20.12 774.84 33.03 45.47 30.70 56.53 219.29 237.25 29.10 2.46 171.44 All MHC's Median 15.26 116.60 30.90 42.15 28.95 42.30 204.30 223.85 27.32 2.17 73.88 New Jersey FMCO FMS Financial Corporation 16.61 108.00 13.00 13.00 15.00 15.20 165.20 173.00 8.71 0.72 10.81 OCFC OceanFirst Financial Corp. 23.10 308.20 18.10 16.50 16.30 15.80 224.30 226.70 17.46 3.46 56.34 PBCI Pamrapo Bancorp, Inc. 22.22 110.50 14.20 14.20 13.90 13.90 208.10 208.10 17.17 3.78 51.25 PFS Provident Financial Services, Inc. 17.66 1,388.10 27.60 28.30 27.60 28.60 130.00 NA 24.69 1.36 35.94 PFSB PennFed Financial Services, Inc. 31.79 215.80 19.90 18.60 19.00 18.70 182.30 184.40 11.35 1.26 23.95 SYNF Synergy Financial Group, Inc. 10.01 124.70 31.30 NA 30.30 NA 119.40 120.20 15.58 1.60 12.12 New Jersey Fully Converted Average 375.88 20.68 18.12 20.35 18.44 171.55 182.48 15.83 2.03 31.74 New Jersey Fully Converted Median 170.25 19.00 16.50 17.65 15.80 173.75 184.40 16.38 1.48 29.95 New Jersey MHC's CSBK Clifton Savings Bancorp, Inc. (MHC) 11.45 349.60 NA NA NA NA 174.90 174.90 47.09 1.05 NA HCBK Hudson City Bancorp, Inc. (MHC) 34.88 6,528.00 27.30 28.10 29.80 31.40 485.10 485.10 33.45 2.06 56.41 New Jersey MHC's Average 3,438.80 27.30 28.10 29.80 31.40 330.00 330.00 40.27 1.56 56.41 New Jersey MHC's Median 3,438.80 27.30 28.10 29.80 31.40 330.00 330.00 40.27 1.56 56.41 Page 5 of 6
Exhibit 8 Industry Multiples Pricing Data as of August 2, 2004
------------------------------------------------------- Current Price in Relation to ------------------------------------------------------- LTM Current Current LTM Tangible Current Dividend Stock Market Core LTM Core Book Book Dividend Payout Price Value Earnings EPS EPS EPS Value Value Assets Yield Ratio Ticker Short Name ($) ($M) (x) (x) (x) (x) (%) (%) (%) (%) (%) ----------------------------------------------------------------------------------------------------------------------------------- Comparable Group ALFC Atlantic Liberty Financial Corp 19.62 33.00 18.90 18.90 22.00 22.00 124.80 124.80 18.05 1.43 25.84 CEBK Central Bancorp, Inc. 32.00 53.30 27.60 NA 23.90 NA 125.00 131.90 10.49 1.50 35.82 ESBK Elmira Savings Bank, FSB 30.00 33.50 13.20 14.60 13.80 15.70 137.00 140.40 10.41 2.30 31.83 HIFS Hingham Institution for Savings 41.01 85.40 15.50 15.50 14.80 14.90 202.40 202.40 16.22 1.76 32.85 LARL Laurel Capital Group, Inc. 20.35 39.30 23.10 23.90 22.10 22.40 142.40 164.90 13.01 3.93 86.96 LSBX LSB Corporation 16.99 73.20 8.00 NA 12.30 NA 128.40 128.40 15.36 3.06 36.96 MFLR Mayflower Co-operative Bank 18.62 38.10 22.20 NA 20.70 NA 215.80 216.90 17.79 2.15 44.44 NBN Northeast Bancorp 18.95 48.10 11.80 12.40 13.10 13.70 127.60 130.40 9.27 1.90 24.83 PHSB PHSB Financial Corp. 20.00 58.10 20.00 35.70 19.10 39.20 127.80 127.80 17.97 4.00 114.29 WSB Washington Savings Bank, F.S.B. (The) 10.44 83.00 7.90 7.90 9.80 9.80 162.90 162.90 16.18 2.30 20.56 WVFC WVS Financial Corp. 17.27 42.80 14.90 24.00 19.20 18.40 146.00 146.00 10.78 3.71 71.11 Comparable Average 53.44 16.65 19.11 17.35 19.51 149.10 152.44 14.14 2.55 47.77 Comparable Median 48.10 15.50 17.20 19.10 17.05 137.00 140.40 15.36 2.30 35.82 All Fully Converted Average 642.94 19.03 21.96 18.85 22.31 153.14 171.25 14.94 2.15 44.96 All Fully Converted Median 87.50 16.60 17.60 16.30 16.45 140.05 153.40 14.03 2.15 35.20 All MHC's Average 774.84 33.03 45.47 30.70 56.53 219.29 237.25 29.10 2.46 171.44 All MHC's Median 116.60 30.90 42.15 28.95 42.30 204.30 223.85 27.32 2.17 73.88 New Jersey Fully Converted Average 375.88 20.68 18.12 20.35 18.44 171.55 182.48 15.83 2.03 31.74 New Jersey Fully Converted Median 170.25 19.00 16.50 17.65 15.80 173.75 184.40 16.38 1.48 29.95 New Jersey MHC's Average 3,438.80 27.30 28.10 29.80 31.40 330.00 330.00 40.27 1.56 56.41 New Jersey MHC's Median 3,438.80 27.30 28.10 29.80 31.40 330.00 330.00 40.27 1.56 56.41 Page 6 of 6
Exhibit 9 Second Step Conversion Performance Pricing Data as of August 2, 2004 ------------------------------ Percent Change from IPO ------------------------------ Ticker Short Name IPO Date After 1 Day To Date --------------------------------------------------------------------------------------------------------------- DSFN DSA Financial Corporation 07/30/2004 (6.00) (6.00) PRTRD Partners Trust Financial Group, Inc. 07/15/2004 (1.00) (0.50) SYNF Synergy Financial Group, Inc. 01/21/2004 10.90 0.10 PBCP Provident Bancorp, Inc. 01/15/2004 15.00 8.40 ------------------------------------------------------------------------------------------------ 2004 Average 4.73 0.50 Median 4.95 (0.20) ------------------------------------------------------------------------------------------------ BKMU Bank Mutual Corporation 10/30/2003 17.80 11.20 JFBI Jefferson Bancshares, Inc. 07/02/2003 23.90 27.30 FNFG First Niagara Financial Group, Inc. 01/21/2003 12.70 23.00 WAYN Wayne Savings Bancshares, Inc. 01/09/2003 12.00 62.00 SFFS Sound Federal Bancorp, Inc. 01/07/2003 10.00 30.40 OCNB Bridge Street Financial, Inc. 01/06/2003 1.60 51.00 ------------------------------------------------------------------------------------------------ 2003 Average 13.00 34.15 Median 12.35 28.85 ------------------------------------------------------------------------------------------------ CSBC Citizens South Banking Corporation 10/01/2002 (0.50) 30.70 BRKL Brookline Bancorp, Inc. 07/10/2002 10.60 43.70 WGBC Willow Grove Bancorp, Inc. 04/04/2002 9.50 63.20 ------------------------------------------------------------------------------------------------ 2002 Average 6.53 45.87 Median 9.50 43.70 ------------------------------------------------------------------------------------------------ PHSB PHSB Financial Corp. 12/21/2001 22.40 100.00 FFFL Fidelity Bankshares, Inc. 05/15/2001 22.31 244.00 ------------------------------------------------------------------------------------------------ 2001 Average 22.36 172.00 Median 22.36 172.00 ------------------------------------------------------------------------------------------------ ------------------------------------------------------------------------------------------------ 1/1/2001 to Average 10.75 45.90 08/02/04 Median 10.90 30.40 ------------------------------------------------------------------------------------------------
Exhibit 10. Recent Standard Conversion Performance Pricing Data as of August 2, 2004 ------------------------------ Percent Change from IPO ------------------------------ Ticker Short Name IPO Date After 1 Day To Date ----------------------------------------------------------------------------------------------------------- TDCB Third Century Bancorp 05/06/2004 13.20 12.50 SEFL St. Edmond's FSB 05/06/2004 (1.50) (3.50) NABC New Haven Savings Bank 04/02/2004 52.00 39.40 --------------------------------------------------------------------------------------------- 2004 YTD Average 21.23 16.13 Median 13.20 12.50 --------------------------------------------------------------------------------------------- KNBT Keystone Nazareth Bank & Trust Co. 11/03/2003 68.80 62.90 RPFG Rainier Pacific Savings Bank 10/21/2003 69.90 66.00 CFBC Community First Bank 06/27/2003 20.00 46.90 RFBK Rantoul First Bank 04/02/2003 15.10 60.00 PFS Provident Bank 01/16/2003 55.00 76.60 CCFC Clay County S&LA 01/09/2003 20.00 37.00 --------------------------------------------------------------------------------------------- 2003 Average 41.47 58.23 Median 37.50 61.45 --------------------------------------------------------------------------------------------- ALFC Atlantic Liberty Savings 10/23/2002 30.20 96.20 TONE TierOne Bank 10/02/2002 38.00 110.90 MCBF Monarch Community Bank 08/30/2002 16.80 42.30 FPTB Pacific Trust Bank 08/23/2002 18.58 87.50 RSVB Mt. Troy Savings Bank 04/08/2002 25.00 62.50 HRGB Heritage Savings Bank 02/26/2002 20.50 161.70 --------------------------------------------------------------------------------------------- 2002 Average 24.85 93.52 Median 22.75 91.85 --------------------------------------------------------------------------------------------- AFBA Allied First Bank 12/31/2001 20.00 44.00 CSFC Michigan City Savings and Loan Association 12/28/2001 20.00 140.00 PBNC Peoples Federal Savings Bank 10/12/2001 21.50 118.00 GLBP Globe Homestead Federal 07/10/2001 13.12 62.50 BAFI Affiliated Bank 06/01/2001 0.00 210.00 CFSL Chesterfield FS&LA of Chicago 05/02/2001 36.50 209.10 FBTC First Bank & Trust 04/19/2001 13.20 18.00 BUCS BUCS Federal 03/15/2001 30.00 160.00 CTZN Citizens First Savings Bank 03/07/2001 38.10 127.00 --------------------------------------------------------------------------------------------- 2001 Average 21.38 120.96 Median 20.00 127.00 --------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------- 1/1/2001 to Average 21.38 120.96 8/2/2004 Median 20.00 127.00 ---------------------------------------------------------------------------------------------
Page 1 Exhibit 11 Roebling Financial Corp, Inc. Pro Forma Analysis Sheet - Twelve Months Ended March 31, 2004 Includes SOP 93-6
------------------------------------------------------------------------------------- Bank Illiquid Comparables State National ------------------------------------------------------------------------------------- Mean Median Mean Median Mean Median ---- ------ ---- ------ ---- ------ Min 19.23 Price-Core Earnings Ratio P/E Mid 22.73 19.51 17.05 18.44 15.80 22.31 16.45 ----------------------------- Max 26.32 Smax 30.30 Min 88.34% Price-to-Book Ratio P/B Mid 96.90% 149.10% 137.00% 171.55% 173.75% 153.14% 140.05% ----------------------- Max 104.28% Smax 111.61% Min 88.34% Price-to-Tangible Book Ratio P/TB Mid 96.90% 152.44% 140.40% 182.48% 184.40% 171.25% 153.40% --------------------------------- Max 104.28% Smax 111.61% Min 11.79% Price-to-Assets Ratio P/A Mid 13.74% 14.14% 15.36% 15.83% 16.38% 14.94% 14.03% ------------------------- Max 15.65% Smax 17.80%
Page 1 Valuation Parameters -------------------------------------------------------------------------------- Prior Twelve Mos. Earning Base Y Period Ended March 31, 2004 $ 552 (1) -------------------------------------------------------------------------------- Pre-Conversion Book Value B As of March 31, 2004 $ 7,513 -------------------------------------------------------------------------------- Pre-Conversion Assets A As of March 31, 2004 $ 87,485 -------------------------------------------------------------------------------- Return on Money R 1.16% (2) -------------------------------------------------------------------------------- Conversion Expenses $ 479 X 3.74% (3) -------------------------------------------------------------------------------- Proceeds Not Invested $ 829 (4) -------------------------------------------------------------------------------- Estimated ESOP Borrowings $ 553 ESOP Purchases E 8.00% (5) Cost of ESOP Borrowings $ 55 (5) Cost of ESOP Borrowings S 0.00% (5) Amort of ESOP Borrowings T 10 Years -------------------------------------------------------------------------------- Amort of MRP Amount N 5 Years Estimated MRP Amount $ 276 (6) MRP Purchases M 3.99% MRP Expense $ 55 -------------------------------------------------------------------------------- Foundation Amount $ - (7) Foundation Amount F 0.00% 0.00% Foundation Opportunity Cost $ - Tax Benefit Z $ - (8) -------------------------------------------------------------------------------- Tax Rate TAX 39.94% -------------------------------------------------------------------------------- Percentage Sold PCT 53.98% -------------------------------------------------------------------------------- Amount to be issued to Public $ 6,909 (9) -------------------------------------------------------------------------------- Earnings Multiple 12 -------------------------------------------------------------------------------- (1) Net income for the twelve months ended March 31, 2004. (2) Net Return assumes a reinvestment rate of 1.93 percent (the 1 year Treasury at March 31, 2004), and a tax rate of 40%. (3) Conversion expenses reflect estimated expenses as presented in the offering document. (4) Includes Stock from ESOP and MRP. (5) Assumes ESOP is amortized straight line over 10 years. (6) Assumes MRP is amortized straight line over 5 years. (7) Not applicable. (8) Not Applicable. (9) The amount to be offered to public. Page 2 Pro Forma Calculation Calculation of Estimated Value (V) at Midpoint Value 3. V= P/E*Y = $12,800,000 1-P/E*PCT*((1-X-E-M-F)*R-(1-TAX)*E/T-(1-TAX)*M/N) 2. V= P/B*(B+Z) = $12,800,000 1-P/B*PCT*(1-X-E-M-F) 1. V= P/A*A = $12,800,000 1-P/A*PCT*(1-X-E-M-F) The appraisal was performed on a market basis and not on the above formulas. ---------------------------------------------------------------------------- Total Shares Price Total Conclusion Shares Per Share Value ---------------------------------------------------------------------------- Appraised Value - Midpoint 1,280,000 $ 10.00 $12,800,000 Range: - Minimum 1,088,000 10.00 10,880,000 - Maximum 1,472,000 10.00 14,720,000 - Super Maximum 1,692,800 10.00 16,928,000
Pre Foundation ------------------------------------------------------------ Appraised Value ------------------------------------------------------------ Conclusion Minimum Midpoint Maximum SuperMaximum * ------------------------------------------------------------ Total Shares 1,088,000 1,280,000 1,472,000 1,692,800 Price per Share $ 10 $ 10 $ 10 $ 10 Full Conversion Value $10,880,000 $12,800,000 $14,720,000 $ 16,928,000 Exchange Shares 500,698 589,056 677,415 779,020 Exchange Percent 46.02% 46.02% 46.02% 46.02% Conversion Shares 587,302 690,944 794,585 913,780 Conversion Percent 53.98% 53.98% 53.98% 53.98% Gross Proceeds $ 5,873,020 $ 6,909,440 $ 7,945,850 $ 9,137,800 Exchange Value $ 5,006,980 $ 5,890,560 $ 6,774,150 $ 7,790,200 Exchange Ratio 2.5551 3.0060 3.4569 3.9754 ------------------------------------------------------------
* SuperMaximum is an overallotment option that is 15% above the maximum amount. Page 3
Pro Forma Effect of Conversion Proceeds As of March 31, 2004 (Dollars in Thousands) ------------------------------ ------------------------------------------------------------ Conversion Proceeds Minimum Midpoint Maximum SuperMax ------------------------------ ------------------------------------------------------------ Total Shares Offered 1,088,000 1,280,000 1,472,000 1,692,800 Conversion Shares Offered 587,302 690,944 794,585 913,780 Price Per Share $ 10 $ 10 $ 10 $ 10 ------------------------------------------------------------ Gross Proceeds $ 5,873 $ 6,909 $ 7,946 $ 9,138 Plus: Value issued to Foundation (9) - - - - ------------------------------------------------------------ Pro Forma Market Capitalization 5,873 6,909 7,946 9,138 ============================================================ Gross Proceeds 5,873 6,909 7,946 9,138 Less: Est. Conversion Expenses 471 479 486 495 Cash issued to foundation - - - - ------------------------------------------------------------ Net Proceeds $ 5,402 $ 6,430 $ 7,460 $ 8,643 ============================================================ ------------------------------ Estimated Income from Proceeds ------------------------------ Net Conversion Proceeds $ 5,402 $ 6,430 $ 7,460 $ 8,643 Less: ESOP Adjustment (3) 470 553 636 731 Less: MRP Adjustment (3) 235 276 318 366 ------------------------------------------------------------ Net Proceeds Reinvested $ 4,697 $ 5,601 $ 6,506 $ 7,546 Estimated Incremental Rate of Return 1.16% 1.16% 1.16% 1.16% ------------------------------------------------------------ Estimated Incremental Return $ 54 $ 65 $ 75 $ 88 Less: Cost of ESOP (4) - - - - Less: Amortization of ESOP (7) 28 33 38 44 Less: MRP Adjustment (7) 28 33 38 44 ------------------------------------------------------------ Pro-forma Net Income (2) (1) (1) - Earnings Before Conversion 552 552 552 552 ------------------------------------------------------------ Earnings Excluding Adjustment 550 551 551 552 Earnings Adjustment (6) - - - - ------------------------------------------------------------ Earnings After Conversion $ 550 $ 551 $ 551 $ 552 ------------------------------------------------------------
Page 4
Pro Forma Effect of Conversion Proceeds As of March 31, 2004 (Dollars in Thousands) ------------------------------------------------------------ ------------------------------- Minimum Midpoint Maximum SuperMax Pro-forma Net Worth ------------------------------------------------------------ ------------------------------ Net Worth at March 31, 2004 $ 7,513 $ 7,513 $ 7,513 $ 7,513 Net Conversion Proceeds 5,402 6,430 7,460 8,643 Plus: MHC Adjustment (7) 96 96 96 96 Plus: Value issued to Foundation - - - - Less: After Tax Expense of Foundation - - - - Less: ESOP Adjustment (1) (470) (553) (636) (731) Less: MRP Adjustment (2) (235) (276) (318) (366) ------------------------------------------------------------ ------------------------------ Pro-forma Net Worth $ 12,306 $ 13,210 $ 14,115 $ 15,155 ------------------------------ Pro-forma Tangible Net Worth Pro-forma Net Worth $ 12,306 $ 13,210 $ 14,115 $ 15,155 Less: Intangible (5) - - - - ------------------------------------------------------------ Pro-forma Tangible Net Worth $ 12,306 $ 13,210 $ 14,115 $ 15,155 ------------------------------ Pro-forma Assets ------------------------------ Total Assets at March 31, 2004 $ 87,485 $ 87,485 $ 87,485 $ 87,485 Net Conversion Proceeds 5,402 6,430 7,460 8,643 Plus: MHC Adjustment (7) 96 96 96 96 Plus: Value issued to Foundation - - - - Less: After Tax Expense of Foundation - - - - Less: ESOP Adjustment (1) (470) (553) (636) (731) Less: MRP Adjustment (2) (235) (276) (318) (366) ------------------------------------------------------------ Pro-forma Assets Excluding Adjustment 92,278 93,182 94,087 95,127 Plus: Adjustment (6) - - - - ------------------------------------------------------------ Pro-forma Total Assets $ 92,278 $ 93,182 $ 94,087 $ 95,127 ------------------------------------------------------------ ------------------------------ Stockholder's Equity Per Share ------------------------------ Net Worth at March 31, 2004 $ 6.91 $ 5.87 $ 5.10 $ 4.44 Estimated Net Proceeds 4.97 5.02 5.07 5.11 Plus: MHC Adjustment 0.09 0.08 0.07 0.06 Plus: Value issued to Foundation - - - - Less: After Tax Expense of Foundation - - - - Less: ESOP Stock (0.43) (0.43) (0.43) (0.43) Less: MRP Stock (0.22) (0.22) (0.22) (0.22) ------------------------------------------------------------ Pro-forma Net Worth Per Share 11.32 10.32 9.59 8.96 Less: Intangible - - - - ------------------------------------------------------------ Pro-forma Tangible Net Worth Per Share $ 11.32 $ 10.32 $ 9.59 $ 8.96 ------------------------------------------------------------
Page 5
Pro Forma Effect of Conversion Proceeds As of March 31, 2004 (Dollars in Thousands) ------------------------------------------------------------ Minimum Midpoint Maximum SuperMax ------------------------------------------------------------ ------------------------- Net Earnings Per Share ------------------------- Historical Earnings Per Share (8) $ 0.53 $ 0.45 $ 0.39 $ 0.34 Incremental return Per Share (8) 0.05 0.05 0.05 0.05 ESOP Adjustment Per Share (8) (0.03) (0.03) (0.03) (0.03) MRP Adjustment Per Share (8) (0.03) (0.03) (0.03) (0.03) Normalizing Adjustment Per Share - - - - ------------------------------------------------------------ Pro Forma Earnings Per Share (8) $ 0.52 $ 0.44 $ 0.38 $ 0.33 ------------------------- ============================================================ Shares Utilized ------------------------- Shares Utilized 1,036 1,218 1,401 1,611 ------------------------------------------------------------ ------------------------- Pro-forma Ratios ------------------------- Price/EPS without Adjustment 19.23 22.73 26.32 30.30 Price/EPS with Adjustment 19.23 22.73 26.32 30.30 Price/Book Value per Share 88.34% 96.90% 104.28% 111.61% Price/Tangible Book Value 88.34% 96.90% 104.28% 111.61% Market Value/Assets 11.79% 13.74% 15.65% 17.80% ------------------------------------------------------------
(1) ESOP Borrowings are deducted from net worth and assets, and amortized over 10 years. (2) MRP Borrowings are omitted from net worth and assets, and amortized over 5 years. (3) Consists of ESOP and MRP amortization. (4) The ESOP loan is from the Holding Company and therefore, there are no costs. (5) Not applicable. (6) Not applicable. (7) ESOP and MRP are amortized over 10 and 5 years respectively, and tax impacted at 40%. (8) All EPS computations are done in accordance with SOP 93-6. (9) Not applicable. Page 6
------------------------ Expense Calculations ------------------------- Total Shares Offered 587 691 795 914 Price Per Share $ 10 $ 10 $ 10 $ 10 ------------------------------------------------------------ Gross Proceeds $ 5,873 $ 6,909 $ 7,946 $ 9,138 Estimated Insider Purchases - - - - ESOP Purchases (470) (553) (636) (731) ------------------------------------------------------------ Proceeds to Base Fee On $ 5,403 $ 6,356 $ 7,310 $ 8,407 Underwriters Percentage 0.80% 0.80% 0.80% 0.80% ------------------------------------------------------------ Underwriters Fee $ 43 $ 51 $ 58 $ 67 Advisory Fee - - - - ------------------------------------------------------------ Total Underwriters Fee 43 51 58 67 All Other Expenses 428 428 428 428 ------------------------------------------------------------ Total Expense $ 471 $ 479 $ 486 $ 495 ------------------------ Shares Calculations ------------------------ Shares Outstanding (used for BV/Sh) 1,088 1,280 1,472 1,693 Less: New ESOP Adjustment 47 55 64 73 Less: Old ESOP Adjustment (1) 14 16 19 22 Plus: New SOP 93-6 ESOP Shares (2) 5 6 6 7 Plus: Old SOP 93-6 ESOP Shares (2) 4 5 5 6 ------------------------------------------------------------ Shares for all EPS Calculations 1,036 1,218 1,401 1,611 ============================================================ Actual number of shares for EPS 1,035,698 1,218,468 1,401,239 1,611,424 Actual foundation shares 0 0 0 0
Post Foundation Appraised Value ------------------------------------------------------------ Conclusion Minimum Midpoint Maximum SuperMaximum ------------------------------------------------------------ Shares Issued and Exchanged 1,088,000 1,280,000 1,472,000 1,692,800 Price per Share $ 10 $ 10 $ 10 $ 10 Shares Issued to Foundation - - - - Total Shares 1,088,000 1,280,000 1,472,000 1,692,800 Exchange Shares 500,698 589,056 677,415 779,020 Conversion Shares 587,302 690,944 794,585 913,780 Implied Exhange Ratio 2.5551 3.0060 3.4569 3.9754 Gross Proceeds $ 5,873,020 $ 6,909,440 $ 7,945,850 $ 9,137,800 Exchange Value $ 5,006,980 $ 5,890,560 $ 6,774,150 $ 7,790,200 ------------------------------------------------------------
Page 7
------------- MRP Dilution ------------------------------------------------------------------------------------------------------ Shares Outstanding 1,088,000 1,280,000 1,472,000 1,692,800 Less: New ESOP Adjustment 46,984 55,276 63,567 73,102 Less: Old ESOP Adjustment 14,022 16,497 18,971 21,817 Plus: New MRP issued (1) 23,492 27,638 31,783 36,551 Plus: New SOP 93-6 ESOP Shares (2) 4,698 5,528 6,357 7,310 Plus: Old SOP 93-6 ESOP Shares 4,006 4,713 5,420 6,233 (2) Shares for all EPS Calculations 1,059,190 1,246,106 1,433,022 1,647,975 EPS $ 0.52 $ 0.44 $ 0.39 $ 0.34 BV/Share $ 11.07 $ 10.10 $ 9.39 $ 8.76 Voting Dilution 2.27% 2.27% 2.27% 2.27% ------------------------------------------------------------------------------------------------------ --------------- Option Dilution ------------------------------------------------------------------------------------------------------ Shares Outstanding 1,088,000 1,280,000 1,472,000 1,692,800 Less: New ESOP Adjustment 46,984 55,276 63,567 73,102 Less: Old ESOP Adjustment 14,022 16,497 18,971 21,817 Plus: Options (1) 108,800 128,000 147,200 169,280 Plus: New SOP 93-6 ESOP Shares (2) 4,698 5,528 6,357 7,310 Plus: Old SOP 93-6 ESOP Shares 4,006 4,713 5,420 6,233 (2) Shares for all EPS Calculations 1,144,498 1,346,468 1,548,439 1,780,704 EPS $ 0.48 $ 0.41 $ 0.36 $ 0.31 BV/Share $ 11.19 $ 10.29 $ 9.63 $ 9.05 Voting Dilution 10.50% 10.50% 10.50% 10.50% ------------------------------------------------------------------------------------------------------
Page 8 Exhibit 12
Roebling Financial Corp, Inc. Pro Forma Analysis Sheet - Twelve Months Ended September 30, 2003 Includes SOP 93-6 ------------------------------------------------------------------------------------ Bank Comparables State National ------------------------------------------------------------------------------------ Mean Median Mean Median Mean Median ---- ------ ---- ------- ----- ------ Min 18.87 Price-Core Earnings Ratio P/E Mid 22.22 19.51 17.05 18.44 15.80 22.31 16.45 ----------------------------- Max 25.64 Smax 29.41 Min 90.83% Price-to-Book Ratio P/B Mid 99.40% 149.10% 137.00% 171.55% 173.75% 153.14% 140.05% ----------------------- Max 106.72% Smax 114.16% Min 90.83% Price-to-Tangible Book Ratio P/TB Mid 99.40% 152.44% 140.40% 182.48% 184.40% 171.25% 153.40% --------------------------------- Max 106.72% Smax 114.16% Min 11.76% Price-to-Assets Ratio P/A Mid 13.70% 14.14% 15.36% 15.83% 16.38% 14.94% 14.03% ------------------------- Max 15.60% Smax 17.75%
Page 1 Exhibit 12 Valuation Parameters -------------------------------------------------------------------------------- Prior Twelve Mos. Earning Base Y Period Ended September 30, 2003 $ 559 (1) -------------------------------------------------------------------------------- Pre-Conversion Book Value B As of September 30, 2003 $ 7,180 -------------------------------------------------------------------------------- Pre-Conversion Assets A As of September 30, 2003 $ 87,744 Return on Money R 1.16% (2) -------------------------------------------------------------------------------- Conversion Expenses $ 479 X 3.74% (3) -------------------------------------------------------------------------------- Proceeds Not Invested $ 829 (4) -------------------------------------------------------------------------------- Estimated ESOP Borrowings $ 553 ESOP Purchases E 8.00% (5) Cost of ESOP Borrowings $ 55 (5) Cost of ESOP Borrowings S 0.00% (5) Amort of ESOP Borrowings T 10 Years -------------------------------------------------------------------------------- Amort of MRP Amount N 5 Years Estimated MRP Amount $ 276 (6) MRP Purchases M 3.99% MRP Expense $ 55 -------------------------------------------------------------------------------- Foundation Amount $ - (7) Foundation Amount F 0.00% 0.00% Foundation Opportunity Cost $ - Tax Benefit Z $ - (8) -------------------------------------------------------------------------------- Tax Rate TAX 39.94% -------------------------------------------------------------------------------- Percentage Sold PCT 53.98% -------------------------------------------------------------------------------- Amount to be issued to Public $ 6,909 (9) -------------------------------------------------------------------------------- Earnings Multiple 12 -------------------------------------------------------------------------------- (1) Net income for the twelve months ended September 30, 2003. (2) Net Return assumes a reinvestment rate of 1.93 percent (the 1 year Treasury at March 31, 2004), and a tax rate of 40%. (3) Conversion expenses reflect estimated expenses as presented in the offering document. (4) Includes Stock from ESOP and MRP. (5) Assumes ESOP is amortized straight line over 10 years. (6) Assumes MRP is amortized straight line over 5 years. (7) Not applicable. (8) Not Applicable. (9) The amount to be offered to public. Page 2 Exhibit 12 Pro Forma Calculation Calculation of Estimated Value (V) at Midpoint Value 3. V= P/E*Y = $12,800,000 1-P/E*PCT*((1-X-E-M-F)*R-(1-TAX)*E/T-(1-TAX)*M/N) 2. V= P/B*(B+Z) = $12,800,000 1-P/B*PCT*(1-X-E-M-F) 1. V= P/A*A = $12,800,000 1-P/A*PCT*(1-X-E-M-F) The appraisal was performed on a market basis and not on the above formulas. Total Shares Price Total Conclusion Shares Per Share Value ------- --------- -----' Appraised Value - Midpoint 1,280,000 $ 10 $12,800,000 Range: - Minimum 1,088,000 $ 10 10,880,000 - Maximum 1,472,000 10 14,720,000 - Super Maximum 1,692,800 10 16,928,000
Pre Foundation ----------------------------------------------------------- Appraised Value ----------------------------------------------------------- Conclusion Minimum Midpoint Maximum SuperMaximum * ----------------------------------------------------------- Total Shares 1,088,000 1,280,000 1,472,000 1,692,800 Price per Share $ 10 $ 10 $ 10 $ 10 Full Conversion Value $10,880,000 $12,800,000 $14,720,000 $ 16,928,000 Exchange Shares 500,698 589,056 677,415 779,020 Exchange Percent 46.02% 46.02% 46.02% 46.02% Conversion Shares 587,302 690,944 794,585 913,780 Conversion Percent 53.98% 53.98% 53.98% 53.98% Gross Proceeds $ 5,873,020 $ 6,909,440 $ 7,945,850 $ 9,137,800 Exchange Value $ 5,006,980 $ 5,890,560 $ 6,774,150 $ 7,790,200 Exchange Ratio 2.5551 3.0060 3.4569 3.9754 -----------------------------------------------------------
* SuperMaximum is an overallotment option that is 15% above the maximum amount. Page 3 Exhibit 12
Pro Forma Effect of Conversion Proceeds As of September 30, 2003 (Dollars in Thousands) ------------------------------ ----------------------------------------------------------- Conversion Proceeds Minimum Midpoint Maximum SuperMax ------------------------------ ----------------------------------------------------------- Total Shares Offered 1,088,000 1,280,000 1,472,000 1,692,800 Conversion Shares Offered 587,302 690,944 794,585 913,780 Price Per Share $ 10 $ 10 $ 10 $ 10 ----------------------------------------------------------- Gross Proceeds $ 5,873 $ 6,909 $ 7,946 $ 9,138 =========================================================== Plus: Value issued to Foundation (9) - - - - Pro Forma Market Capitalization 5,873 6,909 7,946 9,138 Gross Proceeds 5,873 6,909 7,946 9,138 Less: Est. Conversion Expenses 471 479 486 495 Less: Cash issued to the Foundation - - - - ----------------------------------------------------------- Net Proceeds $ 5,402 $ 6,430 $ 7,460 $ 8,643 =========================================================== ------------------------------ Estimated Income from Proceeds ------------------------------ Net Conversion Proceeds $ 5,402 $ 6,430 $ 7,460 $ 8,643 Less: ESOP Adjustment (3) 470 553 636 731 Less: MRP Adjustment (3) 235 276 318 366 ----------------------------------------------------------- Net Proceeds Reinvested $ 4,697 $ 5,601 $ 6,506 $ 7,546 Estimated Incremental Rate of Return 1.16% 1.16% 1.16% 1.16% ----------------------------------------------------------- Estimated Incremental Return $ 54 $ 65 $ 75 $ 88 Less: Cost of ESOP (4) - - - - Less: Amortization of ESOP (7) 28 33 38 44 Less: MRP Adjustment (7) 28 33 38 44 ----------------------------------------------------------- Pro Forma Net Income (2) (1) (1) - Earnings Before Conversion 559 559 559 559 ----------------------------------------------------------- Earnings Excluding Adjustment 557 558 558 559 Earnings Adjustment (6) - - - - ----------------------------------------------------------- Earnings After Conversion $ 557 $ 558 $ 558 $ 559 -----------------------------------------------------------
Page 4 Exhibit 12
Pro Forma Effect of Conversion Proceeds As of September 30, 2003 (Dollars in Thousands) ----------------------------------------------------------- Minimum Midpoint Maximum SuperMax ----------------------------------------------------------- ------------------------------- Pro Forma Net Worth ------------------------------- Net Worth at September 30, 2003 $ 7,180 $ 7,180 $ 7,180 $ 7,180 Net Conversion Proceeds 5,402 6,430 7,460 8,643 Plus: MHC Adjustment (7) 96 96 96 96 Plus: Value issued to Foundation - - - - Less: After Tax Expense of Foundation - - - - Less: ESOP Adjustment (1) (470) (553) (636) (731) Less: MRP Adjustment (2) (235) (276) (318) (366) ----------------------------------------------------------- ------------------------------- Pro Forma Net Worth $ 11,973 $ 12,877 $ 13,782 $ 14,822 ------------------------------- Pro Forma Tangible Net Worth Pro Forma Net Worth $ 11,973 $ 12,877 $ 13,782 $ 14,822 Less: Intangible (5) - - - - ----------------------------------------------------------- Pro Forma Tangible Net Worth $ 11,973 $ 12,877 $ 13,782 $ 14,822 ------------------------------- Pro Forma Assets ------------------------------- Total Assets at September 30, 2003 $ 87,744 $ 87,744 $ 87,744 $ 87,744 Net Conversion Proceeds 5,402 6,430 7,460 8,643 Plus: MHC Adjustment (7) 96 96 96 96 Plus: Value issued to Foundation - - - - Less: After Tax Expense of Foundation - - - - Less: ESOP Adjustment (1) (470) (553) (636) (731) Less: MRP Adjustment (2) (235) (276) (318) (366) ----------------------------------------------------------- Pro Forma Assets Excluding Adjustment 92,537 93,441 94,346 95,386 Plus: Adjustment (6) - - - - ----------------------------------------------------------- Pro Forma Total Assets $ 92,537 $ 93,441 $ 94,346 $ 95,386 ----------------------------------------------------------- ------------------------------- Stockholder's Equity Per Share ------------------------------- Net Worth at September 30, 2003 $ 6.60 $ 5.61 $ 4.88 $ 4.24 Estimated Net Proceeds 4.97 5.02 5.07 5.11 Plus: MHC Adjustment 0.09 0.08 0.07 0.06 Plus: Value issued to Foundation - - - - Less: After Tax Expense of Foundation - - - - Less: ESOP Stock (0.43) (0.43) (0.43) (0.43) Less: MRP Stock (0.22) (0.22) (0.22) (0.22) ----------------------------------------------------------- Pro Forma Net Worth Per Share 11.01 10.06 9.37 8.76 Less: Intangible - - - - Pro Forma Tangible Net Worth Per Share $ 11.01 $ 10.06 $ 9.37 $ 8.76 -----------------------------------------------------------
Page 5 Exhibit 12
Pro Forma Effect of Conversion Proceeds As of September 30, 2003 (Dollars in Thousands) -------------------------------------------------------- Minimum Midpoint Maximum SuperMax ------------------------------ -------------------------------------------------------- Net Earnings Per Share ------------------------------ Historical Earnings Per Share (8) $ 0.54 $ 0.46 $ 0.40 $ 0.35 Incremental return Per Share (8) 0.05 0.05 0.05 0.05 ESOP Adjustment Per Share (8) (0.03) (0.03) (0.03) (0.03) MRP Adjustment Per Share (8) (0.03) (0.03) (0.03) (0.03) Normalizing Adjustment Per Share - - - - -------------------------------------------------------- Pro Forma Earnings Per Share (8) $ 0.53 $ 0.45 $ 0.39 $ 0.34 ------------------------------ Shares Utilized ------------------------------ Shares Utilized 1,034 1,216 1,399 1,608 ------------------------------ Pro Forma Ratios ------------------------------ Price/EPS without Adjustment 18.87 22.22 25.64 29.41 Price/EPS with Adjustment 18.87 22.22 25.64 29.41 Price/Book Value per Share 90.83% 99.40% 106.72% 114.16% Price/Tangible Book Value 90.83% 99.40% 106.72% 114.16% Market Value/Assets 11.76% 13.70% 15.60% 17.75% --------------------------------------------------------
(1) ESOP Borrowings are deducted from net worth and assets, and amortized over 10 years. (2) MRP Borrowings are omitted from net worth and assets, and amortized over 5 years. (3) Consists of ESOP and MRP amortization. (4) The ESOP loan is from the Holding Company and therefore, there are no costs. (5) Not applicable. (6) Not applicable. (7) ESOP and MRP are amortized over 10 and 5 years respectively, and tax impacted at 40%. (8) All EPS computations are done in accordance with SOP 93-6. (9) Not applicable. Page 6 Exhibit 12
------------------------------- Expense Calculations ------------------------------- Total Shares Offered 587 691 795 914 Price Per Share $ 10 $ 10 $ 10 $ 10 ----------------------------------------------------------- Gross Proceeds $ 5,873 $ 6,909 $ 7,946 $ 9,138 Estimated Insider Purchases - - - - ESOP Purchases (470) (553) (636) (731) ----------------------------------------------------------- Proceeds to Base Fee On $ 5,403 $ 6,356 $ 7,310 $ 8,407 Underwriters Percentage 0.80% 0.80% 0.80% 0.80% ----------------------------------------------------------- Underwriters Fee $ 43 $ 51 $ 58 $ 67 Advisory Fee - - - - ----------------------------------------------------------- Total Underwriters Fee 43 51 58 67 All Other Expenses 428 428 428 428 ----------------------------------------------------------- Total Expense $ 471 $ 479 $ 486 $ 495 ------------------------------ Shares Calculations ------------------------------ Shares Outstanding 1,088 1,280 1,472 1,693 Less: New ESOP Adjustment 47 55 64 73 Less: Old ESOP Adjustment (1) 16 19 22 25 Plus: New SOP 93-6 ESOP Shares (2) 5 6 6 7 Plus: Old SOP 93-6 ESOP Shares (2) 4 5 5 6 ----------------------------------------------------------- Shares for all EPS Calculations 1,034 1,216 1,399 1,608 =========================================================== Actual number of shares for EPS 1,033,694 1,216,111 1,398,528 1,608,307 Actual foundation shares 0 0 0 0
Post Foundation ------------------------------------------------------------ Appraised Value ---------------------------- ------------------------------------------------------------ Conclusion Minimum Midpoint Maximum SuperMaximum ---------------------------- ------------------------------------------------------------ Shares Issued and Exchanged 1,088,000 1,280,000 1,472,000 1,692,800 Price per Share $ 10.00 $ 10.00 $ 10.00 $ 10.00 Shares Issued to Foundation - - - - Total Shares 1,088,000 1,280,000 1,472,000 1,692,800 Exchange Shares 500,698 589,056 677,415 779,020 Conversion Shares 587,302 690,944 794,585 913,780 Implied Exhange Ratio 2.5551 3.0060 3.4569 3.9754 Gross Proceeds $ 5,873,020 $ 6,909,440 $ 7,945,850 $ 9,137,800 Exchange Value $ 5,006,980 $ 5,890,560 $ 6,774,150 $ 7,790,200 ------------------------------------------------------------
Page 7
------------- MRP Dilution ------------------------------------------------------------------------------------------------------- Shares Outstanding 1,088,000 1,280,000 1,472,000 1,692,800 Less: New ESOP Adjustment 46,984 55,276 63,567 73,102 Less: Old ESOP Adjustment 16,026 18,854 21,682 24,934 Plus: New MRP issued (1) 23,492 27,638 31,783 36,551 Plus: New SOP 93-6 ESOP Shares (2) 4,698 5,528 6,357 7,310 Plus: Old SOP 93-6 ESOP Shares 4,006 4,713 5,420 6,233 (2) Shares for all EPS Calculations 1,057,186 1,243,749 1,430,311 1,644,858 EPS $ 0.53 $ 0.45 $ 0.39 $ 0.34 BV/Share $ 10.77 $ 9.85 $ 9.16 $ 8.57 Voting Dilution 2.27% 2.27% 2.27% 2.27% ------------------------------------------------------------------------------------------------------- --------------- Option Dilution ------------------------------------------------------------------------------------------------------- Shares Outstanding 1,088,000 1,280,000 1,472,000 1,692,800 Less: New ESOP Adjustment 46,984 55,276 63,567 73,102 Less: Old ESOP Adjustment 16,026 18,854 21,682 24,934 Plus: Options (1) 108,800 128,000 147,200 169,280 Plus: New SOP 93-6 ESOP Shares (2) 4,698 5,528 6,357 7,310 Plus: Old SOP 93-6 ESOP Shares 4,006 4,713 5,420 6,233 (2) Shares for all EPS Calculations 1,142,494 1,344,111 1,545,728 1,777,587 EPS $ 0.49 $ 0.42 $ 0.36 $ 0.31 BV/Share $ 10.91 $ 10.05 $ 9.42 $ 8.87 Voting Dilution 10.53% 10.53% 10.53% 10.53% -------------------------------------------------------------------------------------------------------
Page 8 Exhibit 13
Roebling Financial Corp, Inc. Pro Forma Analysis Sheet - Six Months Ended March 31, 2004 Includes SOP 93-6 ------------------------------------------------------------------------------------- Bank Comparables State National ------------------------------------------------------------------------------------- Mean Median Mean Median Mean Median ----- ------ ----- ------ ---- ------ Min 20.83 Price-Core Earnings Ratio P/E Mid 23.81 19.51 17.05 18.44 15.80 22.31 16.45 ----------------------------- Max 27.78 Smax 31.25 Min 88.34% Price-to-Book Ratio P/B Mid 96.90% 149.10% 137.00% 171.55% 173.75% 153.14% 140.05% ----------------------- Max 104.28% Smax 111.61% Min 88.34% Price-to-Tangible Book Ratio P/TB Mid 96.90% 152.44% 140.40% 182.48% 184.40% 171.25% 153.40% --------------------------------- Max 104.28% Smax 111.61% Min 11.79% Price-to-Assets Ratio P/A Mid 13.74% 14.14% 15.36% 15.83% 16.38% 14.94% 14.03% ------------------------- Max 15.65% Smax 17.80%
Page 1 Exhibit 13 Valuation Parameters -------------------------------------------------------------------------------- Six Months Ended Y Period Ended March 31, 2004 $ 239 (1) -------------------------------------------------------------------------------- Pre-Conversion Book Value B As of March 31, 2004 $ 7,513 -------------------------------------------------------------------------------- Pre-Conversion Assets A As of March 31, 2004 $ 87,485 -------------------------------------------------------------------------------- Return on Money R 1.16% (2) -------------------------------------------------------------------------------- Conversion Expenses $ 479 X 3.74% (3) -------------------------------------------------------------------------------- Proceeds Not Invested $ 829 (4) -------------------------------------------------------------------------------- Estimated ESOP Borrowings $ 553 ESOP Purchases E 8.00% (5) Cost of ESOP Borrowings $ 55 (5) Cost of ESOP Borrowings S 0.00% (5) Amort of ESOP Borrowings T 10 Years -------------------------------------------------------------------------------- Amort of MRP Amount N 5 Years Estimated MRP Amount $ 276 (6) MRP Purchases M 3.99% MRP Expense $ 55 -------------------------------------------------------------------------------- Foundation Amount $ - (7) Foundation Amount F 0.00% 0.00% Foundation Opportunity Cost $ - Tax Benefit Z $ - (8) -------------------------------------------------------------------------------- Tax Rate TAX 39.94% -------------------------------------------------------------------------------- Percentage Sold PCT 53.98% -------------------------------------------------------------------------------- Amount to be issued to Public $ 6,909 (9) -------------------------------------------------------------------------------- Earnings Multiple 6 -------------------------------------------------------------------------------- (1) Net income for the 6 months ended March 31, 2004. (2) Net Return assumes a reinvestment rate of 1.93 percent (the 1 year Treasury at March 31, 2004), and a tax rate of 40%. (3) Conversion expenses reflect estimated expenses as presented in the offering document. (4) Includes Stock from ESOP and MRP. (5) Assumes ESOP is amortized straight line over 10 years. (6) Assumes MRP is amortized straight line over 5 years. (7) Not applicable. (8) Not Applicable. (9) The amount to be offered to public. Page 2 Exhibit 13 Pro Forma Calculation Calculation of Estimated Value (V) at Midpoint Value 3. V= P/E*Y = $12,800,000 1-P/E*PCT*((1-X-E-M-F)*R-(1-TAX)*E/T-(1-TAX)*M/N) 2. V= P/B*(B+Z) = $12,800,000 1-P/B*PCT*(1-X-E-M-F) 1. V= P/A*A = $12,800,000 1-P/A*PCT*(1-X-E-M-F) The appraisal was performed on a market basis and not on the above formulas. Total Shares Price Total Conclusion Shares Per Share Value Appraised Value - Midpoint 1,280,000 $ 10 $12,800,000 Range: - Minimum 1,088,000 $ 10 10,880,000 - Maximum 1,472,000 10 14,720,000 - Super Maximum 1,692,800 10 16,928,000
Pre Foundation ----------------------------------------------------------- Appraised Value ----------------------------------------------------------- Conclusion Minimum Midpoint Maximum SuperMaximum * ----------------------------------------------------------- Total Shares 1,088,000 1,280,000 1,472,000 1,692,800 Price per Share $ 10 $ 10 $ 10 $ 10 Full Conversion Value $10,880,000 $12,800,000 $14,720,000 $ 16,928,000 Exchange Shares 500,698 589,056 677,415 779,020 Exchange Percent 46.02% 46.02% 46.02% 46.02% Conversion Shares 587,302 690,944 794,585 913,780 Conversion Percent 53.98% 53.98% 53.98% 53.98% Gross Proceeds $ 5,873,020 $ 6,909,440 $ 7,945,850 $ 9,137,800 Exchange Value $ 5,006,980 $ 5,890,560 $ 6,774,150 $ 7,790,200 Exchange Ratio 2.5551 3.0060 3.4569 3.9754
* SuperMaximum is an overallotment option that is 15% above the maximum amount. Page 3 Exhibit 13
Pro Forma Effect of Conversion Proceeds As of March 31, 2004 (Dollars in Thousands) ------------------------------ ----------------------------------------------------------- Conversion Proceeds Minimum Midpoint Maximum SuperMax ------------------------------ ----------------------------------------------------------- Total Shares Offered 1,088,000 1,280,000 1,472,000 1,692,800 Conversion Shares Offered 587,302 690,944 794,585 913,780 Price Per Share $ 10 $ 10 $ 10 $ 10 ----------------------------------------------------------- Gross Proceeds $ 5,873 $ 6,909 $ 7,946 $ 9,138 Plus: Value issued to Foundation (9) - - - - ----------------------------------------------------------- Pro Forma Market Capitalization 5,873 6,909 7,946 9,138 =========================================================== Gross Proceeds 5,873 6,909 7,946 9,138 Less: Est. Conversion Expenses 471 479 486 495 Less: Cash issued to the Foundation - - - - ----------------------------------------------------------- Net Proceeds $ 5,402 $ 6,430 $ 7,460 $ 8,643 =========================================================== ------------------------------ Estimated Income from Proceeds ------------------------------ Net Conversion Proceeds $ 5,402 $ 6,430 $ 7,460 $ 8,643 Less: ESOP Adjustment (3) 470 553 636 731 Less: MRP Adjustment (3) 235 276 318 366 ----------------------------------------------------------- Net Proceeds Reinvested $ 4,697 $ 5,601 $ 6,506 $ 7,546 Estimated Incremental Rate of Return 1.16% 1.16% 1.16% 1.16% ----------------------------------------------------------- Estimated Incremental Return $ 27 $ 32 $ 38 $ 44 Less: Cost of ESOP (4) - - - - Less: Amortization of ESOP (7) 14 17 19 22 Less: MRP Adjustment (7) 14 17 19 22 ----------------------------------------------------------- Pro Forma Net Income (1) (2) - - Earnings Before Conversion 239 239 239 239 ----------------------------------------------------------- Earnings Excluding Adjustment 238 237 239 239 Earnings Adjustment (6) - - - - ----------------------------------------------------------- Earnings After Conversion $ 238 $ 237 $ 239 $ 239 -----------------------------------------------------------
Page 4 Exhibit 13
Pro Forma Effect of Conversion Proceeds As of March 31, 2004 (Dollars in Thousands) ----------------------------------------------------------- Minimum Midpoint Maximum SuperMax ----------------------------------------------------------- ------------------------------ Pro Forma Net Worth ------------------------------ Net Worth at March 31, 2004 $ 7,513 $ 7,513 $ 7,513 $ 7,513 Net Conversion Proceeds 5,402 6,430 7,460 8,643 Plus: MHC Adjustment (7) 96 96 96 96 Plus: Value issued to Foundation - - - - Less: After Tax Expense of Foundation - - - - Less: ESOP Adjustment (1) (470) (553) (636) (731) Less: MRP Adjustment (2) (235) (276) (318) (366) ----------------------------------------------------------- Pro Forma Net Worth $ 12,306 $ 13,210 $ 14,115 $ 15,155 ------------------------------ Pro Forma Tangible Net Worth ------------------------------ Pro Forma Net Worth $ 12,306 $ 13,210 $ 14,115 $ 15,155 Less: Intangible (5) - - - - ----------------------------------------------------------- Pro Forma Tangible Net Worth $ 12,306 $ 13,210 $ 14,115 $ 15,155 ------------------------------ Pro Forma Assets ------------------------------ Total Assets at March 31, 2004 $ 87,485 $ 87,485 $ 87,485 $ 87,485 Net Conversion Proceeds 5,402 6,430 7,460 8,643 Plus: MHC Adjustment (7) 96 96 96 96 Plus: Value issued to Foundation - - - - Less: After Tax Expense of Foundation - - - - Less: ESOP Adjustment (1) (470) (553) (636) (731) Less: MRP Adjustment (2) (235) (276) (318) (366) ----------------------------------------------------------- Pro Forma Assets Excluding Adjustment 92,278 93,182 94,087 95,127 Plus: Adjustment (6) - - - - ----------------------------------------------------------- Pro Forma Total Assets $ 92,278 $ 93,182 $ 94,087 $ 95,127 ----------------------------------------------------------- ------------------------------ Stockholder's Equity Per Share ------------------------------ Net Worth at March 31, 2004 $ 6.91 $ 5.87 $ 5.10 $ 4.44 Estimated Net Proceeds 4.97 5.02 5.07 5.11 Plus: MHC Adjustment 0.09 0.08 0.07 0.06 Plus: Value issued to Foundation - - - - Less: After Tax Expense of Foundation - - - - Less: ESOP Stock (0.43) (0.43) (0.43) (0.43) Less: MRP Stock (0.22) (0.22) (0.22) (0.22) ----------------------------------------------------------- Pro Forma Net Worth Per Share 11.32 10.32 9.59 8.96 Less: Intangible - - - - ----------------------------------------------------------- Pro Forma Tangible Net Worth Per Share $ 11.32 $ 10.32 $ 9.59 $ 8.96 -----------------------------------------------------------
Page 5 Exhibit 13
Pro Forma Effect of Conversion Proceeds As of March 31, 2004 (Dollars in Thousands) ----------------------------------------------------------- Minimum Midpoint Maximum SuperMax ----------------------------------------------------------- ---------------------------- Net Earnings Per Share ---------------------------- Historical Earnings Per Share (8) $ 0.23 $ 0.20 $ 0.17 $ 0.15 Incremental return Per Share (8) 0.03 0.03 0.03 0.03 ESOP Adjustment Per Share (8) (0.01) (0.01) (0.01) (0.01) MRP Adjustment Per Share (8) (0.01) (0.01) (0.01) (0.01) Normalizing Adjustment Per Share - - - - ----------------------------------------------------------- Pro Forma Earnings Per Share (8) $ 0.24 $ 0.21 $ 0.18 $ 0.16 ---------------------------- Shares Utilized ---------------------------- Shares Utilized 1,031 1,213 1,395 1,605 ---------------------------- Pro Forma Ratios ---------------------------- Price/EPS without Adjustment 20.83 23.81 27.78 31.25 Price/EPS with Adjustment 20.83 23.81 27.78 31.25 Price/Book Value per Share 88.34% 96.90% 104.28% 111.61% Price/Tangible Book Value 88.34% 96.90% 104.28% 111.61% Market Value/Assets 11.79% 13.74% 15.65% 17.80% -----------------------------------------------------------
(1) ESOP Borrowings are deducted from net worth and assets, and amortized over 10 years. (2) MRP Borrowings are omitted from net worth and assets, and amortized over 5 years. (3) Consists of ESOP and MRP amortization. (4) The ESOP loan is from the Holding Company and therefore, there are no costs. (5) Not applicable. (6) Not applicable. (7) ESOP and MRP are amortized over 10 and 5 years respectively, and tax impacted at 40%. (8) All EPS computations are done in accordance with SOP 93-6. (9) Not applicable. Page 6 Exhibit 13
-------------------------------- Expense Calculations -------------------------------- Total Shares Offered 587 691 795 914 Price Per Share $ 10 $ 10 $ 10 $ 10 ----------------------------------------------------------- Gross Proceeds $ 5,873 $ 6,909 $ 7,946 $ 9,138 Estimated Insider Purchases - - - - ESOP Purchases (470) (553) (636) (731) ----------------------------------------------------------- Proceeds to Base Fee On $ 5,403 $ 6,356 $ 7,310 $ 8,407 Underwriters Percentage 0.80% 0.80% 0.80% 0.80% ----------------------------------------------------------- Underwriters Fee $ 43 $ 51 $ 58 $ 67 Advisory Fee - - - - ----------------------------------------------------------- Total Underwriters Fee 43 51 58 67 All Other Expenses 428 428 428 428 ----------------------------------------------------------- Total Expense $ 471 $ 479 $ 486 $ 495 -------------------------------- Shares Calculations -------------------------------- Shares Outstanding 1,088 1,280 1,472 1,693 Less: New ESOP Adjustment 47 55 64 73 Less: Old ESOP Adjustment (1) 14 16 19 22 Plus: New SOP 93-6 ESOP Shares (2) 2 3 3 4 Plus: Old SOP 93-6 ESOP Shares (2) 2 2 3 3 ----------------------------------------------------------- Shares for all EPS Calculations 1,031 1,213 1,395 1,605 =========================================================== Actual number of shares for EPS 1,031,346 1,213,348 1,395,350 1,604,653 Actual foundation shares 0 0 0 0
Post Foundation Appraised Value ----------------------------------------------------------- Conclusion Minimum Midpoint Maximum SuperMaximum ----------------------------------------------------------- Shares Issued and Exchanged 1,088,000 1,280,000 1,472,000 1,692,800 Price per Share $ 10 $ 10 $ 10 $ 10 Shares Issued to Foundation - - - - Total Shares 1,088,000 1,280,000 1,472,000 1,692,800 Exchange Shares 500,698 589,056 677,415 779,020 Conversion Shares 587,302 690,944 794,585 913,780 Implied Exhange Ratio 2.5551 3.0060 3.4569 3.9754 Gross Proceeds $ 5,873,020 $ 6,909,440 $ 7,945,850 $ 9,137,800 Exchange Value $ 5,006,980 $ 5,890,560 $ 6,774,150 $ 7,790,200 -----------------------------------------------------------
Page 7 Exhibit 13
-------------------------- MRP Dilution ------------------------------------------------------------------------------------------------------- Shares Outstanding 1,088,000 1,280,000 1,472,000 1,692,800 Less: New ESOP Adjustment 46,984 55,276 63,567 73,102 Less: Old ESOP Adjustment 14,022 16,497 18,971 21,817 Plus: New MRP issued (1) 23,492 27,638 31,783 36,551 Plus: New SOP 93-6 ESOP Shares (2) 2,349 2,764 3,178 3,655 Plus: Old SOP 93-6 ESOP Shares 2,003 2,357 2,710 3,117 (2) Shares for all EPS Calculations 1,054,838 1,240,986 1,427,133 1,641,204 EPS $ 0.23 $ 0.19 $ 0.17 $ 0.15 BV/Share $ 11.07 $ 10.10 $ 9.39 $ 8.76 Voting Dilution 2.28% 2.28% 2.28% 2.28% ------------------------------------------------------------------------------------------------------- -------------------------- Option Dilution ------------------------------------------------------------------------------------------------------- Shares Outstanding 1,088,000 1,280,000 1,472,000 1,692,800 Less: New ESOP Adjustment 46,984 55,276 63,567 73,102 Less: Old ESOP Adjustment 14,022 16,497 18,971 21,817 Plus: Options (1) 108,800 128,000 147,200 169,280 Plus: New SOP 93-6 ESOP Shares (2) 2,349 2,764 3,178 3,655 Plus: Old SOP 93-6 ESOP Shares 2,003 2,357 2,710 3,117 (2) Shares for all EPS Calculations 1,140,146 1,341,348 1,542,550 1,773,933 EPS $ 0.21 $ 0.18 $ 0.15 $ 0.13 BV/Share $ 11.19 $ 10.29 $ 9.63 $ 9.05 Voting Dilution 10.55% 10.55% 10.55% 10.55% -------------------------------------------------------------------------------------------------------
Page 8 Page 1 of 6
Exhibit 14 Selected Financial Data for Illiquid Comparables Corporate --------------------------------------------------------- Number of IPO Ticker Short Name Exchange City State Offices Date --------------------------------------------------------------------------------------------------------------- Comparable Thrift Data ABKD American Bank Holdings, Inc. OTC BB Silver Spring MD 4 NA BUCS BUCS Financial Corp OTC BB Owings Mills MD 3 03/15/2001 FNSW Farnsworth Bancorp, Inc. OTC BB Bordentown NJ 4 09/30/1998 NTNY Nittany Financial Corp. OTC BB State College PA 4 10/23/1998 RSVI RSV Bancorp, Inc. OTC BB Pittsburgh PA 1 04/08/2002 SEFL SE Financial Corp. OTC BB Philadelphia PA 2 05/06/2004 --------------------------------------------------------------------------------------------------------------- Average --------------- Median Maximum Minimum ROEB Roebling Financial Corp, Inc. (MHC) OTC BB Roebling NJ 3 10/02/1997 Variance to the Comparable Median
Page 1 of 6 (Continued)
Key Financial Data for the Most Recent Quarter ------------------------------------------------------------------------------- --------------- Total Loans/ Loans/ Securities Deposits/ Borrowings/ Assets Deposits Assets Assets Assets Assets Ticker Short Name ($000) (%) (%) (%) (%) (%) -------------------------------------------------------------------------------------------------------------------------------- Comparable Thrift Data ABKD American Bank Holdings, Inc. 236,767 95.57 63.48 19.06 66.42 26.26 BUCS BUCS Financial Corp 121,786 86.96 66.03 20.51 75.93 15.22 FNSW Farnsworth Bancorp, Inc. 96,196 74.83 68.17 18.46 91.11 0.92 NTNY Nittany Financial Corp. 266,215 82.87 73.98 18.56 89.28 4.61 RSVI RSV Bancorp, Inc. 76,421 65.39 46.98 48.30 71.85 10.90 SEFL SE Financial Corp. 128,668 76.23 42.56 29.66 55.84 12.91 ------------------------------------------------------------------------------------------------------------------------------------ Average 154,342 80.31 60.20 25.76 75.07 11.80 Median 125,227 79.55 64.76 19.79 73.89 11.91 Maximum 266,215 95.57 73.98 48.30 91.11 26.26 Minimum 76,421 65.39 42.56 18.46 55.84 0.92 ROEB Roebling Financial Corp, Inc. (MHC) 87,485 75.00 67.18 25.19 90.27 - Variance to the Comparable Median (37,742) (4.55) 2.42 5.41 16.38 (11.91)
Page 2 of 6
Capital for the Most Recent Quarter ---------------------------------------------------------- Tangible Intangible Core Capital/ Equity + Equity/ Equity/ Assets/ Tangible Reserves/ Assets Tang Assets Equity Assets Assets Ticker Short Name (%) (%) (%) (%) (%) -------------------------------------------------------------------------------------------------------------- Comparable Thrift Data ABKD American Bank Holdings, Inc. 6.45 6.45 - 7.19 7.09 BUCS BUCS Financial Corp 8.31 7.97 4.49 NA 8.82 FNSW Farnsworth Bancorp, Inc. 7.20 7.20 - 6.61 7.63 NTNY Nittany Financial Corp. 5.76 5.13 11.50 5.20 6.44 RSVI RSV Bancorp, Inc. 16.47 16.47 - 11.62 16.71 SEFL SE Financial Corp. 6.17 6.17 - NA 6.39 -------------------------------------------------------------------------------------------------------------- Average 8.39 8.23 2.67 7.66 8.85 Median 6.83 6.83 - 6.90 7.36 Maximum 16.47 16.47 11.50 11.62 16.71 Minimum 5.76 5.13 - 5.20 6.39 ROEB Roebling Financial Corp, Inc. (MHC) 8.59 8.59 - 8.24 9.15 Variance to the Comparable Median 1.77 1.77 - 1.34 1.79
Page 2 of 6 (Continued)
Asset Quality for the Most Recent Quarter ------------------------------------------------------------------------------- NPLs/ Reserves/ NPAs/ NPAs/ Reserves/ Reserves/ Loans NPLs Assets Equity Loans NPAs + 90 Ticker Short Name (%) (%) (%) (%) (%) (%) ---------------------------------------------------------------------------------------------------------------------------------- Comparable Thrift Data ABKD American Bank Holdings, Inc. 0.63 135.03 0.66 10.29 0.85 96.50 BUCS BUCS Financial Corp 0.13 572.90 0.09 1.06 0.76 572.90 FNSW Farnsworth Bancorp, Inc. 0.31 203.47 0.21 2.91 0.63 146.79 NTNY Nittany Financial Corp. NA NA NA NA 0.92 NA RSVI RSV Bancorp, Inc. NA NA NA NA 0.53 177.57 SEFL SE Financial Corp. 0.26 195.14 0.14 2.24 0.51 141.92 ------------------------------------------------------------------------------------------------------------------------------------ Average 0.33 276.64 0.28 4.13 0.70 227.14 Median 0.29 199.31 0.18 2.58 0.70 146.79 Maximum 0.63 572.90 0.66 10.29 0.92 572.90 Minimum 0.13 135.03 0.09 1.06 0.51 96.50 ROEB Roebling Financial Corp, Inc. (MHC) 0.20 407.50 0.14 1.60 0.83 407.50 Variance to the Comparable Median (0.09) 208.20 (0.04) (0.98) 0.14 260.71
Page 3 of 6
Profitability for the Most Recent Quarter ----------------------------------------- Return on Return on Avg Assets Avg Equity Ticker Short Name (%) (%) ----------------------------------------------------------------------------------- Comparable Thrift Data ABKD American Bank Holdings, Inc. 0.83 13.26 BUCS BUCS Financial Corp 0.31 3.66 FNSW Farnsworth Bancorp, Inc. 0.63 8.81 NTNY Nittany Financial Corp. 0.78 13.10 RSVI RSV Bancorp, Inc. 1.09 6.52 SEFL SE Financial Corp. 0.65 7.45 -------------------------------------------------------------------------------------- Average 0.72 8.80 Median 0.72 8.13 Maximum 1.09 13.26 Minimum 0.31 3.66 ROEB Roebling Financial Corp, Inc. (MHC) 0.54 6.52 Variance to the Comparable Median (0.18) (1.61)
Page 3 of 6 (Continued) Page 3 of 6
Income Statement for the Most Recent Quarter ------------------------------------------------------------------------------------ Yield on Net Net Noninterest Noninterest Ave Earn Cost of Interest Interest Income/ Expense/ Efficiency Overhead Assets Funds Spread Margin Avg Assets Avg Assets Ratio Ratio Ticker Short Name (%) (%) (%) (%) (%) (%) (%) (%) ------------------------------------------- ---------------------------------------------------------------------------------------- Comparable Thrift Data ABKD American Bank Holdings, Inc. 5.73 2.24 3.49 3.52 2.41 4.18 68.80 46.01 BUCS BUCS Financial Corp 5.09 2.09 3.00 2.95 2.71 4.86 88.31 76.81 FNSW Farnsworth Bancorp, Inc. NA NA NA 4.20 0.40 3.27 73.61 70.98 NTNY Nittany Financial Corp. 5.25 2.27 2.98 3.03 1.14 2.66 65.13 51.59 RSVI RSV Bancorp, Inc. 5.26 NA NA 3.23 0.15 1.90 57.51 55.50 SEFL SE Financial Corp. 5.74 2.79 2.95 2.75 0.42 2.53 71.31 67.46 ------------------------------------------------------------------------------------------------------------------------------------ Average 5.41 2.35 3.11 3.28 1.21 3.23 70.78 61.39 Median 5.26 2.26 2.99 3.13 0.78 2.97 70.06 61.48 Maximum 5.74 2.79 3.49 4.20 2.71 4.86 88.31 76.81 Minimum 5.09 2.09 2.95 2.75 0.15 1.90 57.51 46.01 ROEB Roebling Financial Corp, Inc. (MHC) 5.08 1.34 3.74 3.98 0.51 3.30 77.05 73.92 Variance to the Comparable Median (0.18) (0.92) 0.75 0.85 (0.27) 0.33 6.99 12.44
Page 4 of 6
Balance Sheet Growth for the Most Recent Quarter ------------------------------------- Asset Loan Deposit Growth Growth Growth Rate Rate Rate Ticker Short Name (%) (%) (%) ------------------------------------------------------ ------------------------------------- Comparable Thrift Data ABKD American Bank Holdings, Inc. (0.20) 22.27 1.92 BUCS BUCS Financial Corp 11.72 13.69 39.39 FNSW Farnsworth Bancorp, Inc. 17.23 10.87 17.17 NTNY Nittany Financial Corp. 28.37 27.03 30.37 RSVI RSV Bancorp, Inc. 24.56 2.41 25.61 SEFL SE Financial Corp. 196.91 23.94 6.78 ------------------------------------------------------ ------------------------------------- Average 46.43 16.70 20.21 Median 20.90 17.98 21.39 Maximum 196.91 27.03 39.39 Minimum (0.20) 2.41 1.92 ROEB Roebling Financial Corp, Inc. (MHC) (0.59) 12.32 1.45 Variance to the Comparable Median (21.49) (5.66) (19.94)
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Market Data ------------------------------------------------------------------------------------- Publicly Tangible Market Price Price Price Reported Publicly Rep Value Per Share High Low Book Value Book Value Ticker Short Name ($) ($) ($) ($) ($) ($) ------------------------------------------------------------------------------------------------------------------------------------ Comparable Thrift Data ABKD American Bank Holdings, Inc. 15.00 7.75 8.10 7.65 7.88 7.88 BUCS BUCS Financial Corp 10.40 26.00 26.00 26.00 25.25 24.11 FNSW Farnsworth Bancorp, Inc. 8.70 16.50 17.75 16.50 13.14 13.14 NTNY Nittany Financial Corp. 45.70 23.75 25.10 22.50 7.97 7.05 RSVI RSV Bancorp, Inc. 11.60 16.25 19.00 16.25 17.67 17.67 SEFL SE Financial Corp. 25.00 9.65 10.50 9.25 NA NA ------------------------------------------------------------------------------------------------------------------------------------ Average 19.40 16.65 17.74 16.36 14.38 13.97 Median 13.30 16.38 18.38 16.38 13.14 13.14 Maximum 45.70 26.00 26.00 26.00 25.25 24.11 Minimum 8.70 7.75 8.10 7.65 7.88 7.05 ROEB Roebling Financial Corp, Inc. (MHC) 13.75 37.00 40.50 29.00 17.66 17.66 Variance to the Comparable Median 0.45 20.63 22.13 12.63 4.52 4.52
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Dividends Current Pricing Data as of 8/2/04 ------------------------ ------------------------------------------------------------------------ Current LTM Dividend Price/ Price/ Price/ Price/ Tang Dividend Payout Price/ Core Price/ LTM Publicly Rep Publicly Rep Price/ Yield Ratio Earnings Earnings LTM EPS Core EPS Book Value Book Value Assets Ticker Short Name ($) (%) (x) (x) (x) (x) (%) (%) (%) -------------------------------- ------------------------ ------------------------------------------------------------------------ Comparable Thrift Data ABKD American Bank Holdings, Inc. - - 7.80 8.10 11.70 11.10 98.30 98.30 6.34 BUCS BUCS Financial Corp - - 27.10 27.10 22.20 22.40 103.00 107.80 8.56 FNSW Farnsworth Bancorp, Inc. 0.61 7.84 14.70 16.80 14.10 17.50 125.60 125.60 9.05 NTNY Nittany Financial Corp. - - 24.70 24.70 26.10 26.30 298.00 336.70 17.17 RSVI RSV Bancorp, Inc. 1.85 22.73 13.50 16.80 14.80 15.80 91.90 91.90 15.14 SEFL SE Financial Corp. - NA NA NA NA NA NA NA NA ------------------------------------- Average 0.41 6.11 17.56 18.70 17.78 18.62 143.36 152.06 11.25 Median - - 14.70 16.80 14.80 17.50 103.00 107.80 9.05 Maximum 1.85 22.73 27.10 27.10 26.10 26.30 298.00 336.70 17.17 Minimum - - 7.80 8.10 11.70 11.10 91.90 91.90 6.34 ROEB Roebling Financial Corp, Inc. (MHC) - - NA NA NA NA NA NA NA Variance to the Comparable Median - - NA NA NA NA NA NA NA
Page 6 of 6 Productivity Full Time Equivalent Employees Ticker Short Name LTM ------------------------------------------------------ Comparable Thrift Data ABKD American Bank Holdings, Inc. 62 BUCS BUCS Financial Corp 42 FNSW Farnsworth Bancorp, Inc. 33 NTNY Nittany Financial Corp. 55 RSVI RSV Bancorp, Inc. 9 SEFL SE Financial Corp. NA ------------------------------------------------------ Average 40 Median 42 Maximum 62 Minimum 9 ROEB Roebling Financial Corp, Inc. (MHC) NA Variance to the Comparable Median NA