Louisiana
(State or other jurisdiction of incorporation or organization) |
6036
(Primary Standard Industrial Classification Code Number) |
02-0815311
(I.R.S. Employer Identification No.) |
Large accelerated filer o | Accelerated filer o | Non-accelerated filer o | Smaller reporting company þ |
Proposed Maximum
|
||||||||||||
Title of Each Class of
|
Amount to be
|
Offering Price
|
Proposed Maximum Aggregate
|
Amount of
|
||||||||
Securities to be Registered | Registered | Per Unit | Offering Price | Registration Fee | ||||||||
Common Stock, $.01 par value per share
|
3,886,954 shares | $10.00 | $38,869,540(1) | $2,771.40 | ||||||||
(1) | Estimated solely for the purpose of calculating the registration fee pursuant to Regulation 457(o) under the Securities Act. |
| If you are a current or former depositor or certain borrower of Home Federal Bank, you may have priority rights to purchase shares in the subscription offering. | |
| If you are not in the above priority but are interested in purchasing shares of our common stock, you may be able to purchase shares in the community offering if shares remain available after priority orders are filled. |
Maximum,
|
||||||||||||||||
Minimum | Midpoint | Maximum | as Adjusted | |||||||||||||
Number of shares
|
1,593,750 | 1,875,000 | 2,156,250 | 2,479,688 | ||||||||||||
Gross offering proceeds
|
$ | 15,937,500 | $ | 18,750,000 | $ | 21,562,500 | $ | 24,796,880 | ||||||||
Estimated offering expenses (excluding selling agent fees)
|
950,000 | 950,000 | 950,000 | 950,000 | ||||||||||||
Selling agent fees(1)
|
545,730 | 642,480 | 739,230 | 850,493 | ||||||||||||
Estimated net proceeds
|
14,441,770 | 17,157,520 | 19,873,270 | 22,996,387 | ||||||||||||
Estimated net proceeds per share
|
$ | 9.06 | $ | 9.15 | $ | 9.22 | $ | 9.27 |
(1) | Assumes 50% of the shares are sold in the subscription and community offering, 50% of the shares are sold in the syndicated community offering and no shares are sold by assisting brokers in the subscription or community offering. For a description of Stifel, Nicolaus & Company, Incorporateds and assisting brokers compensation for the stock offering, see The Conversion and Offering Marketing Arrangements. |
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F-1
EX-1.1
EX-2.1
EX-3.1
EX-3.2
EX-4.0
EX-8.1
EX-8.3
EX-10.6
EX-23.2
EX-23.3
EX-99.3
EX-99.4
EX-99.5
Table of Contents
1
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Retail Lending.
We offer residential
mortgage loans, home equity loans and non-real estate consumer
loans through our branch offices.
Commercial Lending.
We offer commercial
real estate and multi-family residential loans and commercial
business loans to borrowers in our market area.
Deposit Products.
We offer a full range
of traditional deposit products for consumers and businesses,
such as checking accounts, savings accounts, money market
accounts and certificates of deposit.
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Continuing to diversify our loan portfolio by emphasizing
commercial real estate and commercial business loans;
Diversifying our products and services for a larger customer
base and an enhanced competitive position;
Managing our expenses while building an infrastructure to
support our full-service community bank products and services;
Enhancing core earnings through lower cost transaction and
savings accounts combined with higher yielding commercial real
estate and business loans and selling our fixed rate residential
mortgage loan originations;
3
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Being competitive in our market area by emphasizing local
decision making and an efficient loan approval processes;
Continuing expansion in our market area by opening additional
de novo
branches and possibly, through acquisitions of
other financial institutions and banking related businesses
(although we have no current plans, understandings or agreements
with respect to any specific acquisitions); and
Maintaining asset quality while continuing to grow and diversify
our loan portfolio.
The additional funds resulting from the offering will support
continued growth and expansion, including opening new branch
offices, hiring and retaining personnel, as well as providing
enhanced lending capability.
The additional shares in our employee stock ownership plan and
the proposed new stock benefit plans will assist us with
retaining and strengthening our management team by providing
competitive compensation.
The stock holding company structure is a more familiar form of
organization, which we believe will make our common stock more
appealing to investors, and will give us greater flexibility to
access the capital markets though possible future equity and
debt offerings, although we have no current plans, agreements or
understandings regarding any additional securities offerings.
To eliminate some of the uncertainties associated with proposed
financial regulatory reforms which may result in changes to our
primary bank regulator and holding company regulator as well as
changes in regulations applicable to us, including, but not
limited to, capital requirements, payment of dividends and
conversion to full stock form.
To improve our capital position during a period of significant
economic uncertainty, especially for the financial services
industry, although, as of June 30, 2010, Home Federal Bank
was considered well capitalized for regulatory
purposes and is not subject to any directive or recommendation
from the Office of Thrift Supervision or the Federal Deposit
Insurance Corporation to raise capital.
We believe that our current mutual holding company structure has
limited our opportunities to acquire other institutions because
we cannot now issue stock in an acquisition in an amount that
would cause Home Federal Mutual Holding Company to own less than
a majority of the outstanding shares of Home Federal
Bancorp. The conversion will facilitate our ability to acquire
other institutions by eliminating the mutual holding company,
although we do not currently have any agreements or
understandings regarding any specific acquisition transaction.
We expect that the conversion will result in greater liquidity
for our stock by increasing the number of outstanding shares
held by public shareholders and by being listed for trading on
the Nasdaq Global Market.
4
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5
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Home Federal Bancorps historical, present and projected
operating results including, but not limited to, historical
income statement information such as return on assets, return on
equity, net interest margin trends, operating expense ratios,
levels and sources of non-interest income, and levels of loan
loss provisions;
Home Federal Bancorps historical, present and projected
financial condition including, but not limited to, historical
balance sheet size, composition and growth trends, loan
portfolio composition and trends, liability composition and
trends, credit risk measures and trends, and interest rate risk
measures and trends;
the economic, demographic and competitive characteristics of
Home Federal Banks primary market area including, but not
limited to, employment by industry type, unemployment trends,
size and growth of the population, trends in household and per
capita income, deposit market share and largest competitors by
deposit market share;
a comparative evaluation of the operating and financial
statistics of Home Federal Bank with those of other similarly
situated, publicly traded companies, which included a
comparative analysis of balance sheet composition, income
statement ratios, credit risk, interest rate risk and loan
portfolio composition;
the estimated impact of the stock offering on Home Federal
Bancorps consolidated stockholders equity and
earning potential including, but not limited to, the estimated
increase in consolidated equity resulting from the offering, the
estimated increase in earnings resulting from the reinvestment
of the net proceeds of the offering, the estimated impact on the
consolidated equity and earnings resulting from adoption of the
employee benefit plans and the effect of higher consolidated
equity on Home Federal Bancorps future operations; and
the trading market for securities of comparable institutions and
general conditions in the market for such securities.
6
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Price to
Price to
Price to Tangible
Earnings Multiple
Book Value Ratio
Book Value Ratio
41.7
x
53.9
%
53.9
%
50.0
x
60.3
60.3
58.8
x
66.1
66.1
66.7
x
72.0
72.0
23.7
x
73.0
%
78.9
%
17.9
x
74.5
75.9
15.3
x
71.0
%
79.2
%
13.7
x
71.3
77.0
7
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27
35
77
Price to
Price Performance from Initial Offering Price
Closing
Net
Tangible Book
Through
Date
Proceeds
Value Ratio
1 Day
1 Week
1 Month
August 27, 2010
(In millions)
07/15/10
$
8.7
59.9
%
6.5
%
5.8
%
3.0
%
(0.1
)%
07/13/10
19.0
64.7
0.5
(1.6
)
(2.6
)
(1.5
)
07/07/10
26.5
97.8
(6.3
)
(3.1
)
(1.3
)
(2.8
)
07/07/10
166.8
93.9
(5.0
)
(2.9
)
(3.0
)
(8.3
)
06/29/10
76.6
72.6
(4.1
)
(3.7
)
(1.8
)
(3.2
)
06/24/10
364.7
90.6
3.1
(0.9
)
(3.9
)
04/05/10
19.9
81.2
5.5
5.0
4.0
(8.5
)
12/21/09
26.9
63.0
7.5
11.9
13.1
33.8
12/18/09
603.0
103.8
13.5
13.0
14.0
10.3
N/A
145.8
80.8
2.4
2.7
2.7
1.8
N/A
26.9
81.2
3.1
(0.9
)
(2.8
)
*
Transaction involved a simultaneous acquisition.
8
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New
Total
Shares
Shares of
that
New Shares to be
Common
Equivalent
Would be
New Shares to be
Exchanged for
Stock to be
per Share
Received
Sold in this
Existing
Outstanding
Current
for 100
Offering
Common Stock
After the
Exchange
Market
Existing
Amount
Percent
Amount
Percent
Offering
Ratio
Value(1)
Shares(2)
1,593,750
63.8
%
904,481
36.2
%
2,498,231
0.7464
$
7.46
74
1,875,000
63.8
1,064,095
36.2
2,939,095
0.8781
8.78
87
2,156,250
63.8
1,223,709
36.2
3,379,959
1.0098
10.10
100
2,479,688
63.8
1,407,266
36.2
3,886,954
1.1612
11.61
116
(1)
Represents the value of shares of Home Federal Bancorp common
stock received in the conversion by a holder of one share of
Home Federal Bancorp at the exchange ratio, assuming the market
price of $10.00 per share.
(2)
Cash will be paid instead of issuing fractional shares.
9
Table of Contents
Full-time employees, including officers, will be participants in
our existing employee stock ownership plan which will purchase
additional shares in connection with the conversion;
Subsequent to completion of the conversion and offering, we
intend to implement the following plans which will benefit our
employees and directors:
a new stock recognition and retention plan; and
a new stock option plan.
Employee Stock Ownership Plan.
The
employee stock ownership plan provides retirement benefits to
all eligible employees of Home Federal Bank. The plan will
purchase 6.0% of the new holding companys common stock
sold in the offering, with the proceeds of a loan from the new
holding company. The new holding company will make a loan to the
employee stock ownership plan to purchase shares in the
offering. The term of the loan will be 20 years. As the
loan is repaid and shares are released from collateral, the
shares will be allocated to the accounts of participants based
on a participants compensation as a percentage of total
compensation of all plan participants. Non-employee directors
are not eligible to participate in the employee stock ownership
plan. We will incur additional compensation expense as a result
of this plan. See Pro Forma Data for an illustration
of the effects of this plan.
New Stock Option Plan and Stock Recognition and Retention
Plan.
We intend to implement new stock option
and stock recognition and retention plans no earlier than six
months after the conversion and offering. Under these plans, we
may award stock options and shares of restricted stock to
employees and directors. Shares of restricted stock will be
awarded at no cost to the recipient. Stock options will be
granted at an exercise price equal to 100% of the fair market
value of our common stock on the option grant date. We will
incur additional compensation expense as a result of both plans.
See Pro Forma Data for an illustration of the
effects of these plans. Under the new stock option plan, we may
grant stock options in an amount up to 10.0% of the new holding
companys common stock sold in the offering. Under the new
stock recognition and retention plan, we may award restricted
stock in an amount equal to 4.0% of the new holding
companys common stock sold in the offering. The plans will
comply with all applicable Office of Thrift Supervision
regulations. The new stock option plan and stock recognition and
retention plan will supplement the existing 2005 Stock Option
Plan and 2005 Recognition and Retention Plan of Home Federal
Bancorp, which will continue as plans of the new holding
company, following completion of the conversion and offering.
10
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Value of
63,750 Shares
75,000 Shares
86,250 Shares
99,188 Shares
Awarded at
Awarded
Awarded at
Awarded at 15%
Minimum of
at Midpoint of
Maximum of
Above Maximum of
Offering Range
Offering Range
Offering Range
Offering Range
(Dollars in thousands)
$
510
$
600
$
690
$
794
638
750
863
992
765
900
1,035
1,190
893
1,050
1,208
1,389
Value of
159,375
187,500
215,625
247,969
Options
Options
Options
Options
Granted at
Granted at
Granted at
Granted at 15% Above
Per Share
Minimum of
Midpoint of
Maximum of
Maximum of
Option Value
Offering Range
Offering Range
Offering Range
Offering Range
(Dollars in thousands, except per share amounts)
$
1.93
$
308
$
362
$
416
$
479
2.42
386
454
522
600
2.90
462
544
625
719
3.38
539
634
729
838
Number of Shares to be Granted or Purchased
As a % of
Dilution
Common
Resulting
Stock to Be
from
Value of Grants At
At Minimum of
At Maximum of
Sold in the
Issuance of
Minimum of
Maximum of
Offering Range
Offering Range
Offering
Shares(3)
Offering Range
Offering Range
(Dollars in thousands)
95,625
129,375
6.00
%
%
$
959
$
1,294
63,750
86,250
4.00
2.34
638
863
159,375
215,625
10.00
5.86
385
521
318,750
431,250
20.00
%
8.20
%
$
979
$
2,677
11
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(1)
Assumes the value of the new holding companys common stock
is $10.00 per share for purposes of determining the total
estimated value of the grants.
(2)
Assumes the value of a stock option is $2.42, which was
determined using the Black-Scholes option-pricing formula. See
Pro Forma Data.
(3)
Represents the dilution of stock ownership interest. No dilution
is reflected for the employee ownership because such shares are
assumed to be purchased in the offering.
Estimated
Percentage of Total
Shares(1)
Value
Shares Outstanding
(Dollars in thousands)
All Employees
115,005
(2)
$
1,150
3.4
%
129,375
1,294
3.8
%
244,380
2,444
7.2
%
Directors and Officers
70,440
704
2.1
%
86,250
(3)
863
2.6
%
156,690
(4)
1,567
4.6
%
Directors and Officers
176,098
(5)
426
(6)
5.2
%
215,625
521
(7)
6.4
%
391,723
947
11.6
%
792,793
$
4,957
23.5
%
12
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(1)
Shares purchased or awarded and options granted prior to the
conversion and offering have been adjusted for the 1.0098
exchange ratio at the maximum of the offering range for shares
of Home Federal Bancorp.
(2)
Approximately 28,751 (28,472 shares prior to adjustment for
the exchange ratio) of these shares have been allocated to the
accounts of participants. The employee stock ownership plan
purchased 8.0% (113,889 shares) of the shares issued to
other than Home Federal Mutual Holding Company
(1,423,583 shares) in the mutual holding company
reorganization completed in January 2005.
(3)
Home Federal Bancorp reserved 69,756 shares (before
applying exchange ratio) which reflected an amount equal to 4.0%
of the shares that would have been issued to persons other than
Home Federal Mutual Holding Company in the mutual holding
company reorganization if Home Federal Bancorp had issued 49%
(1,743,889 shares) of the total shares issued in the
reorganization (3,558,958 shares) to minority shareholders
rather than 40% actually issued to such persons
(1,423,583 shares). As of June 30, 2010, awards
covering 158,134 (159,683 shares after adjustment for the
exchange ratio) of the indicated 2005 Recognition and Retention
Plan awards have vested, and the shares of Home Federal Bancorp
common stock subject to these vested awards have been
distributed.
(4)
The actual value of new recognition and retention plan awards
will be determined based on their fair value as of the date
grants are made. For purposes of this table, fair value is
assumed to be the same as the offering price of $10.00 per share.
(5)
Of this amount, no options have been exercised to date, and all
previously granted options remain outstanding. Home Federal
Bancorp reserved 174,389 shares (before applying exchange
ratio) under this plan which reflected 10.0% of the shares that
would have been issued to persons other than Home Federal Mutual
Holding Company in the mutual holding company reorganization if
Home Federal Bancorp had issued 49% (1,743,889 shares) of
the total shares issued in the reorganization
(3,558,958 shares) to minority shareholders rather than the
40% actually issued to such persons (1,423,583 shares). As
of June 30, 2010, options covering 158,134 shares
(before applying the exchange ratio) were issued and outstanding.
(6)
The weighted-average fair value of stock options under the 2005
Stock Option Plan has been estimated at $2.42 using the
Black-Scholes option pricing model and assumes that all options
have been granted and are outstanding. Prior to the adjustment
for exchange ratio, the 2005 Stock Option Plan covered a total
of 174,389 shares. The weighted-average assumptions used
for the options issued in 2005 under the 2005 Stock Option Plan
were the following: exercise price, $10.00; dividend yield,
2.4%; expected life, 10 years; expected volatility, 23.23%;
and risk-free interest rate, 2.97%.
(7)
The fair value of stock options to be granted under the new
stock option plan has been estimated at $2.42 per option using
the Black-Scholes option pricing model with the following
assumptions: exercise price, $10.00; trading price on date of
grant, $10.00; dividend yield, 2.4%; expected life,
10 years; expected volatility, 23.23%; and risk-free
interest rate, 2.97%.
13
Table of Contents
relatives living in your house;
companies, trusts or other entities in which you have a
controlling interest or hold a position; or
other persons who may be acting together with you.
14
Table of Contents
personal check, bank check or money order payable to Home
Federal Bancorp, Inc. of Louisiana; or
15
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authorizing Home Federal Bank to withdraw money from the types
of Home Federal Bank deposit accounts permitted on the stock
order form (we will waive any applicable penalties for early
withdrawals from certificate of deposit accounts).
1,593,750
2,156,250
Shares at
Shares at
$10.00
$10.00
per Share
per Share
(Dollars in thousands)
$
15,938
$
21,563
(1,496
)
(1,689
)
$
14,442
$
19,873
100
100
$
(7,221
)
$
(9,937
)
(956
)
(1,294
)
(638
)
(863
)
$
5,727
$
7,880
16
Table of Contents
The Plan of Conversion and Reorganization is approved by at
least a majority of votes eligible to be cast by members of Home
Federal Mutual Holding Company who are depositors and certain
borrowers of Home Federal Bank;
The Plan of Conversion and Reorganization is approved by at
least:
two-thirds of the outstanding shares of Home Federal Bancorp
common stock; and
a majority of the outstanding shares of Home Federal Bancorp
common stock, not including those shares held by Home Federal
Mutual Holding Company;
We sell at least the minimum number of shares offered; and
We receive the final approval of the Office of Thrift
Supervision to complete the conversion and offering and related
transactions.
17
Table of Contents
restrictions on the acquisition of more than 10% of our common
stock and limitations on voting rights of shares held in excess
of 10%;
staggered election of only approximately one-third of our board
of directors each year;
the absence of cumulative voting by shareholders in the election
of directors;
limitations on the ability of shareholders to call special
meetings;
advance notice requirements for shareholder nominations and new
business;
removal of directors without cause by a 75% vote of shareholders
and with cause by a majority vote of all shareholders;
requirement of a 75% vote of shareholders for certain amendments
to the bylaws and certain provisions of the articles of
incorporation;
supermajority vote requirements for the approval of certain
business combinations not approved by the board of
directors; and
the right of the board of directors to issue shares of preferred
or common stock without shareholder approval.
18
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19
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20
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21
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22
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23
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restrictions on acquiring more than 10% of our common stock by
any person and limitations on voting rights;
the election of members of the board of directors to staggered
three-year terms;
the absence of cumulative voting by shareholders in the election
of directors;
provisions restricting the calling of special meetings of
shareholders; and
our ability to issue preferred stock and additional shares of
common stock without shareholder approval.
24
Table of Contents
statements of goals, intentions and expectations;
statements regarding prospects and business strategy;
statements regarding asset quality and market risk; and
estimates of future costs, benefits and results.
general economic conditions, either nationally or in our market
area, that are worse than expected;
changes in the interest rate environment that reduce our
interest margins or reduce the fair value of financial
instruments;
increased competitive pressures among financial services
companies;
changes in consumer spending, borrowing and savings habits;
legislative or regulatory changes that adversely affect our
business;
adverse changes in the securities markets;
our ability to grow and successfully manage such growth;
changes in accounting policies and practices, as may be adopted
by the bank regulatory agencies, the Securities and Exchange
Commission or the Financial Accounting Standards Board; and
our ability to successfully implement our branch expansion
strategy, enter into new markets
and/or
expand product offerings successfully and take advantage of
growth opportunities.
25
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At June 30,
2010
2009
2008
2007
2006
(Dollars in thousands, except per share amounts)
$
185,145
$
154,766
$
137,715
$
118,785
$
114,000
8,837
10,007
7,363
3,972
4,930
63,688
92,647
96,324
83,752
83,694
2,138
2,184
1,688
1,408
1,425
13,403
1,277
852
1,478
93,056
46,948
28,263
25,211
20,866
117,722
86,146
78,359
77,710
71,279
31,507
35,997
26,876
12,368
13,417
33,365
31,310
27,874
27,812
28,539
As of or for the Year Ended June 30,
2010
2009
2008
2007
2006
$
9,169
$
7,596
$
7,004
$
6,590
$
5,664
3,458
3,838
3,968
3,448
2,433
5,711
3,758
3,036
3,142
3,231
36
240
1
5,675
3,518
3,036
3,141
3,231
864
363
198
240
144
5,196
3,113
3,359
2,417
2,414
1,343
768
(125
)
964
961
673
253
(43
)
327
327
$
670
$
515
$
(82
)
$
637
$
634
$
0.21
$
0.16
$
(0.03
)
$
0.19
$
0.19
$
0.21
$
0.16
$
(0.03
)
$
0.19
$
0.19
26
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As of or for the Year Ended June 30,
2010
2009
2008
2007
2006
5.59
%
5.21
%
5.39
%
5.69
%
5.35
%
2.56
3.32
4.00
3.84
2.98
3.03
1.89
1.39
1.85
2.37
3.48
2.58
2.33
2.71
3.05
121.43
126.37
131.06
128.93
129.49
109.22
113.01
90.38
129.95
133.82
3.08
2.09
2.52
2.00
2.14
79.46
80.21
103.87
71.49
71.53
0.40
0.35
(0.06
)
0.53
0.56
2.09
1.70
(0.25
)
2.13
2.10
18.98
20.35
24.83
24.82
26.81
43.73
57.86
52.90
49.37
0.38
%
0.72
%
%
0.46
%
%
0.19
0.23
0.04
0.10
0.52
0.98
0.82
0.92
1.11
0.02
0.03
135.83
133.52
202.59
16.47
%
18.93
%
20.21
%
22.79
%
23.48
%
16.47
18.93
20.21
22.79
23.48
33.67
54.77
73.08
80.63
87.78
4
4
3
3
3
39
22
17
17
17
(1)
Includes merger and stock issuance related expense of $133,000
and $883,000 for the years ended June 30, 2009 and 2008,
respectively.
(2)
With the exception of end of period ratios, all ratios are based
on average monthly balances during the indicated periods.
(3)
Average interest rate spread represents the difference between
the average yield on interest-earning assets and the average
rate paid on interest-bearing liabilities, and net interest
margin represents net interest income as a percentage of average
interest-earning assets.
(4)
The efficiency ratio represents the ratio of non-interest
expense divided by the sum of net interest income and
non-interest income.
(5)
Asset quality ratios and capital ratios are end of period
ratios, except for net charge-offs to average loans receivable.
Table of Contents
15% Above
Minimum of
Midpoint of
Maximum of
Maximum of
Offering Range
Offering Range
Offering Range
Offering Range
1,593,750
1,875,000
2,156,250
2,479,688
Shares at
Percent
Shares at
Percent
Shares at
Percent
Shares at
Percent
$10.00
of Net
$10.00
of Net
$10.00
of Net
$10.00
of Net
per Share
Proceeds
per Share
Proceeds
per Share
Proceeds
per Share
Proceeds
(Dollars in thousands)
$
15,938
100.00
%
$
18,750
100.00
%
$
21,563
100.00
%
$
24,797
100.00
%
(1,496
)
(9.38
)
(1,592
)
(8.49
)
(1,689
)
(7.83
)
(1,800
)
(7.26
)
$
14,442
90.62
%
$
17,158
91.51
%
$
19,873
92.17
%
$
22,996
92.74
%
100
0.63
%
100
0.53
%
100
0.46
%
100
0.40
%
$
(7,221
)
(45.31
)%
$
(8,579
)
(45.75
)%
$
(9,937
)
(46.08
)%
$
(11,498
)
(46.37
)%
(956
)
(6.00
)
(1,125
)
(6.00
)
(1,294
)
(6.00
)
(1,488
)
(6.00
)
(638
)
(4.41
)
(750
)
(4.36
)
(863
)
(4.33
)
(992
)
(4.31
)
$
5,727
39.66
%
$
6,804
39.65
%
$
7,880
39.65
%
$
9,118
39.65
%
to invest in securities;
to pay dividends to shareholders;
to repurchase shares of its common stock, subject to regulatory
restrictions;
to finance the possible acquisition of financial institutions or
branch offices or other businesses that are related to
banking; and
for general corporate purposes.
28
Table of Contents
29
Table of Contents
Stock Price per Share
Cash Dividends
High Bid
Low Bid
per Share
$
9.00
$
7.55
$
0.06
8.55
8.55
0.06
8.55
7.25
0.06
7.75
6.25
0.06
7.50
5.60
0.06
7.00
5.60
0.06
7.15
5.00
0.05
9.30
6.85
0.05
30
Table of Contents
Pro Forma at June 30, 2010
Home Federal Bank
Minimum
Midpoint
Maximum
15% Above
Historical at
1,593,750
1,875,000
2,156,250
Maximum
June 30, 2010
Shares
Shares
Shares
2,479,688 Shares
Percent of
Percent of
Percent of
Percent of
Percent of
Amount
Assets(1)
Amount
Assets
Amount
Assets
Amount
Assets
Amount
Assets
(Dollars in thousands)
$
39,065
18.02
%
$
39,092
20.48
%
$
40,169
20.93
%
$
41,245
21.37
%
$
42,483
21.87
%
$
29,989
16.47
%
$
35,716
19.02
%
$
36,793
19.48
%
$
37,869
19.94
%
$
39,107
20.46
%
7,282
4.00
%
7,511
4.00
%
7,554
4.00
%
7,597
4.00
%
7,647
4.00
%
$
22,707
12.47
%
$
28,205
15.02
%
$
29,239
15.48
%
$
30,272
15.94
%
$
31,460
16.46
%
$
29,989
33.13
%
$
35,716
19.02
%
$
36,793
19.48
%
$
37,869
19.94
%
$
39,107
20.46
%
3,621
4.00
%
3,666
4.00
%
3,675
4.00
%
3,684
4.00
%
3,694
4.00
%
$
26,368
14.48
%
$
32,050
17.07
%
$
33,118
17.54
%
$
34,185
18.00
%
$
35,413
18.52
%
$
30,478
33.67
$
36,205
39.50
%
$
37,282
40.58
%
$
38,358
41.65
%
$
39,596
42.88
%
7,241
8.00
%
7,333
8.00
%
7,350
8.00
%
7,367
8.00
%
7,387
8.00
%
$
23,237
25.67
$
28,872
31.50
%
$
29,932
32.58
%
$
30,991
33.65
%
$
32,209
34.88
%
$
7,221
$
8,579
$
9,937
$
11,498
100
100
100
100
(956
)
(1,125
)
(1,294
)
(1,488
)
(638
)
(750
)
(863
)
(992
)
$
5,727
$
6,804
$
7,880
$
9,118
(1)
Tier 1 leverage capital level is shown as a percentage of
adjusted total assets of $182.1 million. Risk-based capital
levels are shown as a percentage of risk-weighted assets of
$90.5 million.
31
Table of Contents
Pro Forma Capital Based Upon the Sale at $10.00 per Share
Home
Maximum as
Federal
Minimum
Midpoint
Maximum
Adjusted,
Bancorp
1,593,750
1,875,000
2,156,250
2,479,688
Historical
Shares
Shares
Shares
Shares
(Dollars in thousands)
$
117,722
$
117,722
$
117,722
$
117,722
$
117,722
31,507
31,507
31,507
31,507
31,507
$
149,229
$
149,229
$
149,229
$
149,229
$
149,229
14
25
29
34
39
13,655
28,086
30,797
33,508
36,627
20,665
20,665
20,665
20,665
20,665
100
100
100
100
2,096
2,096
2,096
2,096
2,096
(2,094
)
(2,094
)
(2,094
)
(2,094
)
(2,094
)
(826
)
(826
)
(826
)
(826
)
(826
)
(145
)
(145
)
(145
)
(145
)
(145
)
(956
)
(1,125
)
(1,294
)
(1,488
)
(638
)
(750
)
(863
)
(992
)
$
33,365
$
46,313
$
48,748
$
51,182
$
53,982
18.02
%
23.38
%
24.31
%
25.22
%
26.24
%
(1)
Does not reflect withdrawals from deposit accounts for the
purchase of common stock in the offering. Such withdrawals would
reduce pro forma deposits and assets by the amount of such
withdrawals.
(2)
The pro forma amounts of common stock and additional paid-in
capital have been increased to reflect the number of shares of
common stock to be outstanding, which includes the exchange of
all of the currently outstanding shares of Home Federal Bancorp
common stock pursuant to the exchange ratio. No effect has been
given to the issuance of additional shares of common stock
pursuant to our proposed stock option
32
Table of Contents
plan. We intend to adopt a new stock option plan and to submit
such plan to shareholders at a meeting of shareholders to be
held at least six months following completion of the conversion
and offering. If the stock option plan is approved by
shareholders, an amount equal to approximately 10.0% of the
shares of Home Federal Bancorp common stock sold in the offering
will be reserved for the stock option plan. Your ownership
percentage would decrease by approximately 5.86% if all
potential stock options are exercised from our authorized but
unissued stock. See Pro Forma Data and
Management New Stock Benefit Plans
Stock Option Plan. In addition, all treasury stock of Home
Federal Bancorp will be cancelled in connection with the
consummation of the conversion and the offering.
(3)
The retained earnings of Home Federal Bank will be partially
restricted after the offering. Home Federal Bank will be
prohibited from paying cash dividends to Home Federal Bancorp to
the extent that any such payment would reduce Home Federal
Banks regulatory capital levels below its minimum
regulatory capital levels or would impair the liquidation
account to be established for the benefit of eligible account
holders and supplemental eligible account holders of Home
Federal Bank. See Regulation Regulation of
Home Federal Bank Capital Distributions.
(4)
Assumes that 6.0% of Home Federal Bancorps common stock
sold in the offering will be purchased by our employee stock
ownership plan in addition to the shares already owned by the
employee stock ownership plan. The common stock acquired by our
employee stock ownership plan is reflected as a reduction of
stockholders equity. Assumes the funds used to acquire our
employee stock ownership plan shares will be borrowed from Home
Federal Bancorp. See Footnote 1 to the table set forth under
Pro Forma Data and see also
Management New Stock Benefit Plans
Employee Stock Ownership Plan.
(5)
Gives effect to the recognition and retention plan which we
expect to adopt after the conversion and offering and present to
shareholders for approval at a meeting of shareholders to be
held at least six months after we complete the offering. No
shares will be purchased by the recognition and retention plan
in the conversion and offering, and such plan cannot purchase
any shares until shareholder approval has been obtained. If the
recognition and retention plan is approved by our shareholders,
the plan intends to acquire an amount of common stock equal to
approximately 4.0% of the shares of Home Federal Bancorp common
stock sold in the offering. The funds to enable such purchases
will be provided by Home Federal Bancorp. The table assumes that
shareholder approval has been obtained and that such shares are
purchased in the open market at $10.00 per share. The common
stock so acquired by the recognition plan is reflected as a
reduction in stockholders equity. If the shares are
purchased at prices higher or lower than the initial purchase
price of $10.00 per share, such purchases would have a greater
or lesser impact, respectively, on stockholders equity. If
the recognition and retention plan purchases authorized but
unissued shares from Home Federal Bancorp such issuance would
dilute the voting interests of existing shareholders by
approximately 2.34%. See Pro Forma Data and
Management New Stock Benefit Plans
Recognition and Retention Plan.
The new holding company will sell 50% of the shares of common
stock in the subscription offering and community offering and
50% of the shares will be sold in a syndicated community
offering and will not sell any shares through assisting brokers;
33
Table of Contents
The new holding companys employee stock ownership plan
will purchase an amount equal to 6.0% of the shares sold in the
offering at a price of $10.00 per share with a loan from Home
Federal Bancorp;
expenses of the conversion and offering, other than the fees to
be paid to Stifel Nicolaus & Company, Incorporated are
estimated to be $950,000;
25,200 shares of common stock will be purchased by Home
Federal Bancorps executive officers and directors and
their immediate families; and
Stifel Nicolaus & Company, Incorporated will receive a
fee equal to 1.0% of the aggregate purchase price of the shares
of common stock sold in the offering, excluding any shares
purchased by any employee benefit plans, and any of our
directors, officers or employees or members of their immediate
families.
Pro forma earnings have been calculated assuming the stock had
been sold at the beginning of the period and the net proceeds
had been invested at a yield of 1.79% for the year ended
June 30, 2010. This represents the yield on a five-year
U.S. Treasury note as of June 30, 2010, which, in
light of current market interest rates, we consider to more
accurately reflect the pro forma reinvestment rate than the
arithmetic average of the weighted average yield earned on our
interest earning assets and the weighted average rate paid on
our deposits, which is the reinvestment rate generally required
by Office of Thrift Supervision regulations.
The pro forma after-tax yields on the net proceeds from the
offering were assumed to be 1.18% for the year ended
June 30, 2010.
No withdrawals were made from Home Federal Banks deposit
accounts for the purchase of shares in the offering.
Historical and pro forma per share amounts have been calculated
by dividing historical and pro forma amounts by the indicated
number of shares of common stock, as adjusted in the pro forma
net income per share to give effect to the purchase of shares by
the employee stock ownership plan.
Pro forma stockholders equity amounts have been calculated
as if the conversion and offering had been completed on
June 30, 2010 and no effect has been given to the assumed
earnings effect of the transactions.
34
Table of Contents
At or for the Year Ended June 30, 2010
1,593,750
1,875,000
2,156,250
2,479,688
Shares Sold
Shares Sold
Shares Sold
Shares Sold
at $10.00
at $10.00
at $10.00
at $10.00
per Share
per Share
per Share
per Share
(Minimum
(Midpoint
(Maximum
(15% Above
of Range)
of Range)
of Range)
Maximum)
(Dollars in thousands)
$
15,938
$
18,750
$
21,563
$
24,797
9,045
10,641
12,237
14,073
24,983
29,391
33,800
38,870
$
15,938
$
18,750
$
21,563
$
24,797
(1,496
)
(1,592
)
(1,689
)
(1,800
)
14,442
17,158
19,874
22,997
(956
)
(1,125
)
(1,294
)
(1,488
)
(638
)
(750
)
(863
)
(992
)
100
100
100
100
$
12,948
$
15,383
$
17,816
$
20,617
$
670
$
670
$
670
$
670
153
182
210
243
(42
)
(50
)
(58
)
(66
)
(32
)
(37
)
(43
)
(49
)
(84
)
(99
)
(114
)
(131
)
(77
)
(91
)
(104
)
(120
)
$
588
$
575
$
561
$
547
$
0.28
$
0.24
$
0.21
$
0.18
0.06
0.06
0.06
0.07
(0.02
)
(0.02
)
(0.02
)
(0.02
)
(0.01
)
(0.01
)
(0.01
)
(0.01
)
(0.03
)
(0.03
)
(0.04
)
(0.03
)
(0.03
)
(0.03
)
(0.03
)
(0.03
)
$
0.25
$
0.21
$
0.17
$
0.16
41.7
x
50.0
x
58.8
x
66.7
x
2,407,387
2,832,220
3,257,053
3,745,612
$
33,365
$
33,365
$
33,365
$
33,365
14,442
17,158
19,874
22,997
(956
)
(1,125
)
(1,294
)
(1,488
)
(638
)
(750
)
(863
)
(992
)
100
100
100
100
$
46,313
$
48,748
$
51,182
$
53,982
$
13.36
$
11.35
$
9.87
$
8.58
5.78
5.84
5.88
5.92
0.04
0.03
0.03
0.03
(0.38
)
(0.38
)
(0.38
)
(0.38
)
(0.26
)
(0.26
)
(0.26
)
(0.26
)
$
18.54
$
16.59
$
15.14
$
13.89
53.9
%
60.3
%
66.1
%
72.0
%
2,498,231
2,939,095
3,379,959
3,886,954
Table of Contents
(1)
Assumes that the employee stock ownership plan will acquire a
number of shares equal to 6.0% of Home Federal Bancorps
common stock to be sold in the conversion and offering. The
employee stock ownership plan will borrow the funds used to
acquire these shares from the net proceeds of the offering
retained by Home Federal Bancorp. The amount of this borrowing
has been reflected as a reduction from gross proceeds to
determine estimated net investable proceeds. This borrowing will
have an interest rate of 3.25%, and a term of 20 years.
Home Federal Bank intends to make contributions to the employee
stock ownership plan in amounts at least equal to the principal
and interest requirement of the debt. Interest income that Home
Federal Bancorp will earn on the loan will offset the interest
paid on the loan by Home Federal Bank. As the debt is paid down,
shares will be released for allocation to participants
accounts and shareholders equity will be increased.
The adjustment to pro forma net income for the employee stock
ownership plan reflects the after-tax compensation expense
associated with the plan, based on an assumed effective tax rate
of 34.0%. Applicable accounting principles require that
compensation expense for the employee stock ownership plan be
based upon shares committed to be released and that unallocated
shares be excluded from earnings per share computations. An
equal number of shares (1/15% of the total, based on a
15-year
loan) will be released each year over the term of the loan. The
valuation of shares committed to be released would be based upon
the average market value of the shares during the year, which,
for purposes of this calculation, was assumed to be equal to the
$10.00 per share purchase price. If the average market value per
share is greater than $10.00 per share, total employee stock
ownership plan expense would be greater.
(2)
Assumes that Home Federal Bancorp will purchase in the open
market a number of shares equal to 4.0% of the shares of Home
Federal Bancorp common stock sold in the offering, that will be
reissued as restricted stock awards under the recognition and
retention plan proposed to be adopted following the conversion
and offering. Repurchases will be funded with cash on hand at
Home Federal Bancorp or with dividends paid to Home Federal
Bancorp by Home Federal Bank. The cost of these shares has been
reflected as a reduction from gross proceeds to determine
estimated net investable proceeds. In calculating the pro forma
effect of the restricted stock awards, it is assumed that the
required shareholder approval has been received, that the shares
used to fund the awards were acquired at the beginning of the
respective period and that the shares were acquired at the
$10.00 per share purchase price. The issuance of authorized but
unissued shares of common stock instead of shares repurchased in
the open market would dilute the ownership interests of existing
shareholders, by approximately 2.34%, assuming the midpoint of
the offering range. The adjustment to pro forma net income for
the restricted stock awards reflects the after-tax compensation
expense associated with the awards. It is assumed that the fair
market value of a share of Home Federal Bancorp common stock was
$10.00 at the time the awards were made, that all shares were
granted in the first year after the conversion and offering,
that shares of restricted stock issued under the recognition and
retention plan vest over a five-year period, or 20% per year,
that compensation expense is recognized on a straight-line basis
over each vesting period so that 20% of the value of the shares
awarded was an amortized expense during each year, and that the
combined federal and state income tax rate was 34.0%. If the
fair market value per share is greater than $10.00 per share on
the date shares are awarded then, total recognition and
retention plan expense would be greater.
(3)
Pro forma income on net investable proceeds is equal to the net
proceeds less the cost of acquiring shares in the open market at
the $10.00 per share purchase price to fund the employee stock
ownership plan and the restricted stock awards under the
recognition and retention plan multiplied by the after-tax
reinvestment rate. The after-tax reinvestment rate is equal to
1.18% for the year ended June 30, 2010 based on the
following assumptions: combined federal and state income tax
rate of 34.0% and a pre-tax reinvestment rate of 1.79% for the
year ended June 30, 2010.
(4)
Following the offering, Home Federal Bank will become subject to
the Louisiana shares tax. The shares tax is based upon
capitalized earnings and taxable stockholders equity minus
certain real and personal property credits. The amount shown is
an estimate. For additional information, see
Taxation State Taxation.
36
Table of Contents
(5)
The adjustment to pro forma net income for stock options
reflects the compensation expense associated with the stock
options (assuming no federal tax benefit) that may be granted
under the new stock option plan to be adopted following the
conversion and offering. If the new stock option plan is
approved by shareholders, a number of shares equal to 10.0% of
Home Federal Bancorps common stock sold in the offering
will be reserved for future issuance upon the exercise of stock
options that may be granted under the plan. Using the
Black-Scholes option-pricing formula, each option is assumed to
have a value of $2.42 based on the following assumptions:
exercise price, $10.00; trading price on date of grant, $10.00;
dividend yield, 2.4%; expected life, six years; expected
volatility, 23.23%; and risk-free interest rate, 2.97%. It is
assumed that all stock options were granted in the first year
after the offering, that stock options granted under the stock
option plan vest over a five-year period, or 20.0% per year,
that compensation expense is recognized on a straight-line basis
over each vesting period so that 20.0% of the value of the
options awarded was an amortized expense during each year. If
the fair market value per share is different than $10.00 per
share on the date options are awarded under the stock option
plan, or if the assumptions used in the option-pricing formula
are different from those used in preparing this pro forma data,
the value of the stock options and the related expense would be
different. Applicable accounting standards do not prescribe a
specific valuation technique to be used to estimate the fair
value of employee stock options. Home Federal Bancorp may use a
valuation technique other than the Black-Scholes option-pricing
formula and that technique may produce a different value. The
issuance of authorized but unissued shares of common stock to
satisfy option exercises instead of shares repurchased in the
open market would dilute the ownership interests of existing
shareholders by approximately 3.3%, assuming the midpoint of the
offering range.
(6)
The historical net income per share has been adjusted to reflect
the exchange ratio of the additional shares to be issued by Home
Federal Bancorp in exchange for the shares of Home Federal
Bancorp common stock. As reported, the basic net income per
share of Home Federal Bancorp for the year ended June 30,
2010 was $0.21.
(7)
The number of shares used to calculate pro forma net income per
share is equal to the total number of shares to be outstanding
upon completion of the conversion and offering, less the number
of shares purchased by the employee stock ownership plan not
committed to be released within one year following the
conversion and offering. The number of shares used to calculate
pro forma shareholders equity per share is equal to the
total number of shares to be outstanding upon completion of the
conversion and offering.
37
Table of Contents
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Continue to Grow and Diversify Our Loan Portfolio by, among
other things, emphasizing our origination of commercial real
estate and business loans.
Home Federal
Bancorps traditional lending
38
Table of Contents
activity historically had been concentrated on the origination
of single-family residential loans and, to a lesser degree,
consumer loans. Beginning in 2009, we hired three senior
commercial loan officers to develop a loan portfolio more
consistent with that of a community bank. At June 30, 2010,
our commercial real estate loans amounted to $15.4 million,
or 16.4% of the total loan portfolio, compared to
$8.2 million, or 17.2% at June 30, 2009. Our
commercial business loans at June 30, 2010 amounted to
$9.5 million or 10.1% of the total loan portfolio compared
to $3.9 million, or 8.2% at June 30, 2009. Commercial
real estate, commercial business, construction and development
and consumer loans all typically have higher yields and are more
interest sensitive than long-term single-family residential
mortgage loans. We plan to continue to grow and diversify our
loan portfolio, and we intend to continue to grow our holdings
of commercial real estate and business loans. In addition, the
net proceeds to be received from the conversion and offering
will increase our
loan-to-one
borrower limits, which will permit us to originate and retain
larger balance, commercial real estate and business loans.
Diversify Our Products and Services.
We intend
to continue to emphasize increasing the amount of our commercial
business products to provide a full-service banking relationship
to our commercial customers. We have also introduced mobile and
Internet banking and remote deposit capture, to better serve our
commercial clients. Additionally, we have developed new deposit
products focused on expanding our deposit base to new types of
customers.
Managing Our Expenses.
In recent periods, we
have incurred significant additional expenses related to
personnel and infrastructure. While our total non-interest
expense increased $2.1 million in fiscal 2010 compared to
2009, we expect such increases will moderate in the future.
Enhancing Core Earnings.
We expect to improve
our interest rate spread by emphasizing commercial real estate
and business loans which generally bear interest rates higher
than residential real estate loans and selling most of our fixed
rate residential mortgage loan originations. The weighted
average yield on our loan portfolio for the year ended
June 30, 2010 was 6.7% and average interest rate spread for
the year ended June 30, 2010 was 3.0% as compared to 1.9%
for the year ended June 30, 2009. Likewise, we have
increased the amount of low cost deposits including
non-interest-bearing checking accounts which resulted in a
reduction in Home Federal Bancorps weighted average cost
of its deposits, the primary component of its interest expense
for fiscal 2010.
Expanding Our Franchise in our Market Area and Contiguous
Communities.
We intend to pursue opportunities to
expand our market area by opening additional
de novo
banking offices and possibly, through acquisitions of other
financial institutions and banking related businesses (although
we have no current plans, understandings or agreements with
respect to any specific acquisitions). We expect to focus on
contiguous areas to our current locations in Caddo and Bossier
Parishes. Our first branch office in North Bossier is expected
to open in October 2010 and may develop a site in South Bossier
in the future.
Maintain Our Asset Quality.
At June 30,
2010, our non-performing assets totaled $360,000 or 0.19% of
total assets. We had no real estate owned or troubled debt
restructurings at June 30, 2010. We intend to continue to
stress maintaining high asset quality after the conversion and
offering even as we continue to grow our institution and
diversity our loan portfolio. Home Federal Bancorp does not, nor
has it in the past, originated or purchased
sub-prime
mortgage loans.
Cross-Selling Products and Services and Emphasizing Local
Decision
. We have promoted cross-selling products
and services in our branch offices and emphasized our local
decision making and streamlined loan approval process. We
presently have two full-time loan underwriters at Home Federal
Bank.
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40
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41
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June 30,
Yield/
2010
2009
Rate
Average
Average
at June 30,
Average
Yield/
Average
Yield/
2010
Balance
Interest
Rate
Balance
Interest
Rate
(Dollars in thousands)
4.78
%
$
78,880
$
3,942
5.00
%
$
107,683
$
5,333
4.95
%
5.70
77,879
5,218
6.70
32,630
2,238
6.86
0.07
7,163
9
0.13
5,578
25
0.45
5.20
%
163,922
9,169
5.59
%
145,891
7,596
5.21
%
4,787
2,730
$
168,709
$
148,621
0.42
%
5,588
23
0.41
%
5,653
26
0.46
%
0.12
11,523
22
0.19
7,896
21
0.27
1.19
14,377
183
1.27
4,268
38
0.89
2.66
67,981
2,010
2.96
61,780
2,378
3.85
1.90
99,469
2,238
2.25
79,597
2,463
3.09
3.47
35,529
1,219
3.43
35,853
1,375
3.84
2.23
%
134,998
3,457
2.56
%
115,450
3,838
3.32
%
1,696
2,927
136,694
118,377
32,015
30,244
$
168,709
$
148,621
$
28,924
$
30,441
$
5,712
3.03
%
$
3,758
1.89
%
3.48
%
2.58
%
121.43
%
126.37
%
(1)
Includes retained earnings and accumulated other comprehensive
loss.
(2)
Interest rate spread represents the difference between the
weighted-average yield on interest-earning assets and the
weighted-average rate on interest-bearing liabilities.
(3)
Net interest margin is net interest income divided by net
average interest-earning assets.
42
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2010 vs. 2009
2009 vs. 2008
Increase (Decrease)
Total
Increase (Decrease)
Total
Due to
Increase
Due to
Increase
Rate
Volume
(Decrease)
Rate
Volume
(Decrease)
(In thousands)
$
39
$
(1,427
)
$
(1,388
)
$
(98
)
$
651
$
553
(126
)
3,103
2,977
(118
)
284
166
(23
)
7
(16
)
(104
)
(23
)
(127
)
(110
)
1,683
1,573
(320
)
912
592
(3
)
(1
)
(4
)
(1
)
5
4
(9
)
10
1
3
2
5
55
90
145
21
5
26
(605
)
239
(366
)
(508
)
(99
)
(607
)
(562
)
338
(224
)
(485
)
(87
)
(572
)
(145
)
(12
)
(157
)
(249
)
691
442
(707
)
326
(381
)
(734
)
604
(130
)
$
597
$
1,357
$
1,954
$
414
$
308
$
722
43
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44
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NPV as % of Portfolio
Change in Interest Rates in
Net Portfolio Value
Value of Assets
Amount
$ Change
% Change
NPV Ratio
Change
(Dollars in thousands)
$
30,323
$
(7,943
)
(20.76
)%
16.84
%
(2.82
)%
33,578
(4,688
)
(12.25
)
18.11
(1.55
)
36,349
(1,917
)
(5.01
)
19.09
(0.57
)
38,266
19.66
38,636
370
0.97
19.69
0.03
38,661
396
1.03
19.60
(0.05
)
45
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48
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June 30,
2010
2009
Percent of
Percent of
Amount
Total Loans
Amount
Total Loans
(Dollars in thousands)
$
36,257
38.65
%
$
22,106
46.50
%
14,550
15.51
8,193
17.24
872
0.93
15,422
16.44
8,193
17.24
9,079
9.68
4,884
10.27
9,454
10.08
3,904
8.21
8,442
9.00
2,348
4.94
7,793
8.31
338
0.71
2,963
3.16
4,914
10.34
4,069
4.33
451
0.95
93,479
99.65
47,138
99.16
285
0.30
359
0.76
48
0.05
40
0.08
333
0.35
399
0.84
93,812
100.00
%
47,537
100.00
%
(489
)
(466
)
(267
)
(123
)
$
93,056
$
46,948
(1)
Does not include loans held for sale amounting to
$13.4 million and $1.3 million at June 30, 2010
and June 30, 2009, respectively.
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Year Ended June 30,
2010
2009
(In thousands)
$
113,753
$
32,160
8,645
8,217
7,780
12,877
2,770
7,561
3,502
11,569
339
6,488
3,702
168,673
50,690
168,673
50,690
(71,554
)
(16,157
)
(50,844
)
(15,609
)
(122,398
)
(31,766
)
(167
)
(239
)
$
46,108
$
18,685
(1)
Other items consist of deferred loan fees, the allowance for
loan losses and loans held for sale at year end.
51
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Home
Equity Loans
and Lines
One- to
Commercial
Multi-
of Credit
Four-Family
Real Estate
Family
Commercial
and Other
Residential
Secured
Residential
Business
Land
Construction
Consumer
Total
(In thousands)
$
1,275
$
1,071
$
115
$
2,882
$
3,398
$
4,355
$
2,862
$
15,958
1,419
520
3,909
846
4,735
2,751
245
14,425
2,414
434
1,354
83
4,285
13,198
11,770
633
4,080
309
687
4,042
34,719
1,258
1,230
292
133
2,913
1,529
788
2,317
15,164
397
3,634
19,195
$
36,257
$
15,422
$
9,079
$
9,454
$
8,442
$
7,793
$
7,365
$
93,812
Floating or
Fixed-Rate
Adjustable-Rate
Total
(In thousands)
$
27,351
$
8,906
$
36,257
15,422
15,422
9,079
9,079
9,454
9,454
8,442
8,442
7,793
7,793
7,365
7,365
$
84,906
$
8,906
$
93,812
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June 30, 2010
June 30, 2009
30-89
90 or More Days
30-89
90 or More Days
Days Overdue
Overdue
Days Overdue
Overdue
Number
Principal
Number
Principal
Number
Principal
Number
Principal
of Loans
Balance
of Loans
Balance
of Loans
Balance
of Loans
Balance
(Dollars in thousands)
4
$
265
1
$
15
1
$
75
2
$
349
1
345
4
$
265
2
$
360
1
$
75
2
$
349
0.28
%
0.39
%
0.16
%
0.74
%
0.28
%
0.38
%
0.16
%
0.73
%
June 30,
2010
2009
(Dollars in thousands)
$
15
$
349
345
360
349
360
349
$
360
$
349
0.39
%
0.74
%
0.19
%
0.23
%
(1)
Non-performing loans consist of non-accruing loans plus accruing
loans 90 days or more past due.
56
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At or for the Year Ended
June 30,
2010
2009
(Dollars in thousands)
$
93,812
$
47,537
77,879
32,630
$
466
$
235
36
240
(13
)
(9
)
$
489
$
466
135.83
%
133.52
%
0.52
%
0.98
%
June 30,
2010
2009
Loan
Loan
Category
Category
Amount of
as a % of
Amount of
as a % of
Allowance
Total Loans
Allowance
Total Loans
(Dollars in thousands)
$
30
38.65
%
$
29
46.50
%
95
16.44
91
17.23
70
9.68
67
10.27
140
10.08
133
8.21
75
9.00
71
4.94
74
8.31
71
0.71
5
7.85
4
12.13
$
489
100.00
%
$
466
100.00
%
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June 30,
2010
2009
Amortized
Fair
Amortized
Fair
Cost
Value
Cost
Value
(In thousands)
$
1,840
$
1,840
$
1,806
$
1,806
298
323
378
389
2,138
2,163
2,184
2,195
1,538
1,559
2,415
1,727
58,974
62,129
89,567
90,920
60,512
63,688
91,982
92,647
$
62,650
$
65,851
$
94,166
$
94,842
Amounts at June 30, 2010 which Mature in
Over One
Weighted
Year
Weighted
Over Five
Weighted
Weighted
One Year
Average
Through
Average
Through
Average
Over
Average
or Less
Yield
Five Years
Yield
Ten Years
Yield
Ten Years
Yield
(Dollars in thousands)
$
8
6.08
%
$
5
6.41
%
$
866
3.52
%
$
61,573
4.95
%
1,559
3.54
1,840
.37
$
8
6.08
%
$
5
6.41
%
$
866
3.52
%
$
64,972
4.78
%
(1)
None of the listed equity securities has a stated maturity.
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June 30,
2010
2009
(In thousands)
$
205
$
251
2,812
14,087
58,004
75,301
61,021
89,639
128
155
881
1,013
422
502
1,431
1,670
$
62,452
$
91,309
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At or For the
Year Ended June 30,
2010
2009
(Dollars in thousands)
$
89,945
$
98,407
24,253
(14,555
)
(13,957
)
(16,420
)
(19,048
)
302
290
59,272
89,945
4.95
%
5.09
%
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June 30,
2010
2009
Percent of
Percent of
Amount
Total Deposits
Amount
Total Deposits
(Dollars in thousands)
$
12
0.01
%
$
134
0.14
%
30,309
25.75
11,970
13.90
16,734
14.22
13,030
15.13
17,497
14.86
21,405
24.85
7,865
6.68
12,990
15.08
1,473
1.25
3,272
3.80
73,890
62.77
62,801
72.90
5,266
4.47
6,056
7.03
18,130
15.40
8,537
9.91
20,436
17.36
8,752
10.16
43,832
37.23
23,345
27.10
$
117,722
100.00
%
$
86,146
100.00
%
Year Ended June 30,
2010
2009
Average
Average
Average
Interest
Rate
Average
Interest
Rate
Balance
Expense
Paid
Balance
Expense
Paid
(Dollars in thousands)
$
5,588
$
23
0.41
%
$
5,653
$
26
0.46
%
11,523
22
0.19
7,896
21
0.27
14,377
183
1.27
4,268
38
0.89
67,981
2,010
2.96
61,780
2,378
3.85
$
99,469
$
2,238
2.25
%
$
79,597
$
2,463
3.09
%
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Year Ended June 30,
2010
2009
(In thousands)
$
86,146
$
78,359
30,059
6,212
1,517
1,575
$
31,576
$
7,787
Balance at June 30, 2010
Maturing in the 12 Months Ending June 30,
2011
2012
2013
Thereafter
Total
(In thousands)
$
12
$
$
$
$
12
29,338
971
30,309
3,173
11,359
1,732
471
16,735
1,851
1,059
3,728
10,858
17,496
3,474
2,932
1,401
58
7,865
521
751
201
1,473
$
38,369
$
17,072
$
7,062
$
11,387
$
73,890
Weighted
Amount
Average Rate
(Dollars in thousands)
$
3,928
2.61
%
4,771
1.75
1,965
2.36
3,663
1.89
9,808
2.96
$
24,135
2.45
%
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At or For the Year
Ended June 30,
2010
2009
(Dollars in thousands)
$
35,529
$
35,853
42,542
41,134
31,507
35,997
3.43
%
3.84
%
3.47
%
3.81
%
Amount
(In thousands)
$
9,616
11,422
5,907
1,915
236
2,411
$
31,507
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Net Book Value
Amount of
Leased/Owned
of Property
Deposits
(In thousands)
Shreveport, LA
Owned
$
241
$
45,241
Shreveport, LA
Owned
(1)
328
51,497
Shreveport, LA
Leased
20,984
Shreveport, LA
Leased
Bossier Parish, LA
Owned
436
Bossier City, LA
Owned
1,526
(1)
The building is owned but the land is subject to an operating
lease which was renewed on November 30, 2008 for a five
year period.
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The Office of Thrift Supervision will be merged into the Office
of the Comptroller of the Currency and the authority of the
other remaining bank regulatory agencies restructured. The
federal thrift charter will be preserved under the jurisdiction
of the Office of the Comptroller of the Currency.
A new independent consumer financial protection bureau will be
established within the Federal Reserve Board, empowered to
exercise broad regulatory, supervisory and enforcement authority
with respect to both new and existing consumer financial
protection laws. Smaller financial institutions, like Home
Federal Bank, will be subject to the supervision and enforcement
of their primary federal banking regulator with respect to the
federal consumer financial protection laws.
Tier 1 capital treatment for hybrid capital
items like trust preferred securities is eliminated subject to
various grandfathering and transition rules.
The current prohibition on payment of interest on demand
deposits was repealed, effective July 21, 2011.
State law is preempted only if it would have a discriminatory
effect on a federal savings association or is preempted by any
other federal law. The Office of the Comptroller of the Currency
must make a
66
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preemption determination on a
case-by-case
basis with respect to a particular state law or other state law
with substantively equivalent terms.
Deposit insurance is permanently increased to $250,000 and
unlimited deposit insurance for noninterest-bearing transaction
accounts extended through January 1, 2013.
Deposit insurance assessment base calculation will equal the
depository institutions total assets minus the sum of its
average tangible equity during the assessment period.
The minimum reserve ratio of the Deposit Insurance Fund
increased to 1.35 percent of estimated annual insured
deposits or assessment base; however, the Federal Deposit
Insurance Corporation is directed to offset the
effect of the increased reserve ratio for insured
depository institutions with total consolidated assets of less
than $10 billion.
Authority over savings and loan holding companies will transfer
to the Federal Reserve Board.
Leverage capital requirements and risk based capital
requirements applicable to depository institutions and bank
holding companies will be extended to thrift holding companies.
The Federal Deposit Insurance Act was amended to direct federal
regulators to require depository institution holding companies
to serve as a source of strength for their depository
institution subsidiaries.
The Securities and Exchange Commission is authorized to adopt
rules requiring public companies to make their proxy materials
available to shareholders for nomination of their own candidates
for election to the board of directors.
Public companies will be required to provide their shareholders
with a non-binding vote: (i) at least once every three
years on the compensation paid to executive officers, and
(ii) at least once every six years on whether they should
have a say on pay vote every one, two or three years.
A separate, non-binding shareholder vote will be required
regarding golden parachutes for named executive officers when a
shareholder vote takes place on mergers, acquisitions,
dispositions or other transactions that would trigger the
parachute payments.
Securities exchanges will be required to prohibit brokers from
using their own discretion to vote shares not beneficially owned
by them for certain significant matters, which
include votes on the election of directors, executive
compensation matters, and any other matter determined to be
significant.
Stock exchanges, which do not include the OTC
Bulletin Board, will be prohibited from listing the
securities of any issuer that does not have a policy providing
for (i) disclosure of its policy on incentive compensation
payable on the basis of financial information reportable under
the securities laws, and (ii) the recovery from current or
former executive officers, following an accounting restatement
triggered by material noncompliance with securities law
reporting requirements, of any incentive compensation paid
erroneously during the three-year period preceding the date on
which the restatement was required that exceeds the amount that
would have been paid on the basis of the restated financial
information.
Disclosure in annual proxy materials will be required concerning
the relationship between the executive compensation paid and the
financial performance of the issuer.
Item 402 of
Regulation S-K
will be amended to require companies to disclose the ratio of
the Chief Executive Officers annual total compensation to
the median annual total compensation of all other employees.
Smaller reporting companies are exempt from complying with the
internal control auditor attestation requirements of
Section 404(b) of the Sarbanes-Oxley Act.
67
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investing in the stock of a savings institution;
acquiring a mutual association through the merger of such
association into a savings institution subsidiary of such
holding company or an interim savings institution subsidiary of
such holding company;
merging with or acquiring another holding company, one of whose
subsidiaries is a savings institution;
investing in a corporation, the capital stock of which is
available for purchase by a savings institution under federal
law or under the law of any state where the subsidiary savings
institution or association is located; and
the permissible activities described below for non-grandfathered
savings and loan holding companies.
68
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70
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Total Risk-Based
Tier 1 Risk-Based
Tier 1 Leverage
Capital
Capital
Capital
10% or more
6% or more
5% or more
8% or more
4% or more
4% or more
Less than 8%
Less than 4%
Less than 4%
Less than 6%
Less than 3%
Less than 3%
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Making any new investments or engaging in any new activity not
allowed for both a national bank and a savings association;
Establishing any new branch office unless allowable for a
national bank; and
Paying dividends unless allowable for a national bank.
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Principal Occupation During the
Year Term
Expires
Director. Dentist, Shreveport, Louisiana.
2010
Dr. Colquitt brings extensive knowledge to the board of the
professional community through his dental practice in
Shreveport, Louisiana. Age 65. Director since 1993.
Chairman of the Board of Directors of Home Federal Bank since
January 1998. Chief Executive Officer of Home Federal Bank since
September 1993 and President from 1993 to February 2009.
Chairman, President and Chief Executive Officer of Home Federal
Bancorp since 2005.
2010
Mr. Daniel Herndon brings valuable insight and knowledge to
the board from his service as President and Chief Executive
Officer of Home Federal Bancorp and as one of the longest
serving members of the Board. Mr. Herndon has gained
valuable banking and institutional knowledge from his years of
service and his ties to the local business community in the
greater Shreveport area. Age 70. Director since 1980.
Director. President of Southwestern Wholesale, Shreveport,
Louisiana since 1980.
2010
Mr. Lawrence brings significant business enterprise and
managerial oversight skills to the board as President and owner
of a dry goods wholesale supplier in Shreveport, Louisiana.
Age 64. Director since 1994.
Director. Retired geologist.
2011
Mr. David Herndon brings valuable institutional knowledge
to the board which he has gained through his years of service as
a director, as well as knowledge of oil and gas industry
customers through his work as a geologist in that industry.
Age 74. Director since 1998.
Director. Insurance executive, Woodus Humphrey Insurance, Inc.
Shreveport, Louisiana.
2011
Mr. Humphrey brings entrepreneurial experience to the board
as former owner of an insurance agency that focuses on property
and liability insurance for woodworking plants and operations
with field representatives in six states. Age 70. Director
since 2000.
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Principal Occupation During the
Year Term
Expires
Director. Co-owner of House of Carpets and Lighting, a floor
coverings and lighting fixtures business in Shreveport,
Louisiana, since September 2007, and co-owner of Roly Poly
sandwich franchises located in Shreveport and West Monroe,
Louisiana since 2005.
2011
Mr. Harrison brings substantial business and
entrepreneurial experience to the board as co-owner of a local
carpet and lighting business in Shreveport, Louisiana and
sandwich franchises in the greater Shreveport area. Age 51.
Director since 2007.
Director. President and Chief Operating Officer of Home Federal
Bank since February 2009 and Executive Vice President and Chief
Operating Officer of Home Federal Bancorp since November 2009.
Previously, Mr. Barlow served as Executive Vice President
and Area Manager for the Arkansas-Louisiana-Texas area
commercial real estate operations of Regions Bank from August
2006 until February 2009. From 2005 until August 2006,
Mr. Barlow was a Regions Bank City President for the
Shreveport-Bossier area and from February 2003 to 2005 he served
as Commercial Loan Manager for Regions Bank for the
Shreveport-Bossier area. Mr. Barlow served in various
positions at Regions Bank since 1997.
2012
Mr. Barlow brings substantial managerial, banking and
lending experience to the board, as well as significant
knowledge of the local commercial real estate market from his
years of service as manager and is regional President of a
regional bank. Age 41. Director since 2009.
Director. Executive Vice President of Home Federal Bank and Home
Federal Bancorp since September 1993 and January 2005,
respectively Chief Financial Officer of Home Federal Bank and
Home Federal Bancorp since November 2009.
2012
Mr. Patterson brings significant banking and institutional
experience to the board having served in various positions with
Home Federal Bank since 1964. Age 68. Director since 1990.
Director. Retired physician.
2012
Mr. Wedgeworth brings significant institutional knowledge
to the board as one of our longest serving directors and whose
father served as the first manager of Home Federal Bank in 1924.
Age 84. Director since 1980.
Director. Chief Financial Officer of Wilhite Electric Co.
Chairman of the Greater Bossier Economic Development Foundation.
Of Counsel for the firm Downer, Huguet & Wilhite, LLC.
Serves on the Executive Committee of the Bossier Chamber of
Commerce and as Executive Committee and Board Member of the
Greater Bossier Economic Development Foundation. Previously, a
Partner Attorney for the firm Downer, Huguet &
Wilhite, LLC.
2010
Mr. Wilhite brings knowledge of the local business and
legal community to the board through his service as Chairman of
the Greater Bossier Economic Development Foundation and as a
member of the Executive Committee of the Bossier Chamber of
Commerce. Age 41. Director since 2010.
Table of Contents
Fees Earned or
Stock
Option
All Other
Paid in Cash
Awards(1)
Awards(1)
Compensation(2)
Total
$
9,000
$
$
$
1,431
$
10,431
8,600
1,000
9,600
4,850
1,431
6,281
8,400
1,431
9,831
7,500
1,431
8,931
9,350
1,431
10,781
9,000
1,431
10,431
2,250
2,250
(1)
As of June 30, 2010, each of our non-employee directors,
other than Messrs. Harrison and Wilhite, held
597 shares of unvested restricted stock and 7,473 stock
options. The stock options have an exercise price of $9.85 per
share and are vesting at a rate of 20% per year commencing on
August 18, 2006.
(2)
Includes dividends paid on shares awarded pursuant to the 2005
Recognition and Retention Plan that vested during fiscal 2010,
for each director other than Messrs. Harrison and Wilhite.
Dividends paid on the restricted common stock are held in the
Recognition Plan Trust and paid to the recipient when the
restricted stock is earned. Also includes bonuses paid in June
and December 2009.
(3)
Mr. Hearne resigned as a director in January 2010.
Mr. Wilhite has served as a director since March 2010.
78
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Name
Age
41
Senior Vice President Mortgage Lending of Home Federal Bank
since June 2009. Prior thereto, Vice President, Director of
Branch Operations, First Family Mortgage, Inc. from July 2004 to
May 2009.
35
Senior Vice President Commercial Lending of Home Federal Bank
since February 2009. Prior thereto, Vice President Commercial
Real Estate, Regions Bank from 2006 to 2009, and previously,
Assistant Vice President Business Banking Relationship Manager,
Regions Bank from 2003 to 2006.
Nominating and
Corporate
Audit
Compensation
Governance
*
*
*
*
*
*
*
79
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Fiscal
Stock
Option
All Other
Year
Salary
Bonus
Awards
Awards
Compensation(1)
Total
2010
$
137,550
$
38,550
$
54,345
$
230,445
2009
133,525
13,155
53,049
199,729
2010
152,500
62,945
35,074
250,519
2009
56,246
18,679
74,925
2010
109,013
25,740
38,324
173,077
2009
105,850
10,430
37,877
154,157
(1)
Includes contributions by Home Federal Bank of $10,382, $4,684
and $6,776 to the accounts of Messrs. Herndon, Barlow and
Patterson, respectively, under the Home Federal Bank 401(k) Plan
during fiscal 2010, the fair market value ($9.00) on
December 31, 2009, the date shares of Home Federal Bancorp
common stock were allocated, multiplied by the 1,001 and
750 shares allocated to the employee stock ownership plan
accounts of Messrs. Herndon and Patterson, respectively,
during fiscal 2010 and $10,200, $10,200 and $10,750 in
directors fees paid to Messrs. Herndon, Barlow and
Patterson, respectively, during fiscal 2010. Also includes
health insurance premiums paid on behalf of
Messrs. Herndon, Barlow and Patterson, dividends paid on
restricted stock awards in fiscal 2010 and use of a
company-owned automobile and club dues for Mr. Barlow.
Stock Awards
Market Value of
Option Awards
Number of Shares or
Shares or
Number of Securities Underlying
Option
Option
Units of Stock
Units of Stock
Unexercised Options
Exercise
Expiration
That Have Not
That Have Not
Exercisable
Unexercisable
Price
Date
Vested
Vested
34,800
8,700
$
9.85
8/18/2015
3,486
$
27,888
20,928
5,232
9.85
8/18/2015
1,860
14,880
80
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81
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85
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Amount and Nature of Beneficial
Percent of
Ownership as of May 13, 2008(1)
Common Stock(2)
2,135,375
63.8
%
Shreveport, Louisiana 71101
274,157
(3)
8.2
New York, New York 10017
2,112
*
9,424
*
6,500
(4)
*
102,398
(5)
3.0
38,922
(6)
1.2
9,324
*
20,462
(7)
*
40,765
(8)
1.2
11,462
*
2,500
*
125
(9)
243,994
7.1
%
*
Represents less than 1% of our outstanding common stock.
(1)
Based upon filings made pursuant to the Securities Exchange Act
of 1934 and information furnished by the respective individuals.
Under regulations promulgated pursuant to the Securities
Exchange Act of 1934, shares of common stock are deemed to be
beneficially owned by a person if he or she directly or
indirectly has or shares (i) voting power, which includes
the power to vote or to direct the voting of the shares, or
(ii) investment power, which includes the power to dispose
or to direct the disposition of the shares. Unless otherwise
indicated, the named beneficial owner has sole voting and
dispositive power with respect to the shares.
(2)
Each beneficial owners percentage ownership is determined
by assuming that options held by such person (but not those held
by any other person) and that are exercisable within
60 days of the voting record date have been exercised.
(3)
This information is based on a Schedule 13G filed with the
Securities and Exchange Commission by Third Avenue Management
LLC on February 13, 2009. Third Avenue reports sole voting
and dispositive power over all the shares.
(4)
Includes 1,000 shares held jointly with
Mr. Harrisons spouse, 3,000 shares held in his
individual retirement account and 1,250 shares held by his
daughters.
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(5)
Includes 19,961 shares held in Home Federal Banks
401(k) Plan for the benefit of Mr. Herndon,
5,025 shares allocated to Mr. Herndons account
in the Home Federal Bank employee stock ownership plan and
22,460 shares held by Herndon Investment Company LLC over
which Mr. Herndon disclaims beneficial ownership except
with respect to his 50% ownership interest therein.
(6)
Includes 22,460 shares held by Herndon Investment Company
LLC, of which Mr. Herndon is a 50% owner, and over which he
disclaims beneficial ownership except with respect to his
pecuniary interest therein.
(7)
Includes 5,000 shares held in Mr. Lawrences
individual retirement account and 5,000 shares held jointly
with his spouse.
(8)
Includes 5,057 shares are held in Home Federal Banks
401(k) Plan for the benefit of Mr. Patterson and
3,838 shares allocated to Mr. Pattersons account
in the employee stock ownership plan.
(9)
The 125 shares are held in Mr. Sawries account
in Home Federal Banks 401(k) Plan.
Total Shares of
Home Federal Bancorp
Number of New Shares to be
Proposed Purchases of
(New) Common
Received in Exchange for
Common Stock
Stock to be Held
Existing Shares of
Dollar
Number of
Dollar
Number of
Home Federal Bancorp(1)(2)
Amount
Shares
Amount
Shares
1,855
$
100,000
10,000
$
118,545
11,855
1,713
2,000
200
19,132
1,913
5,708
57,077
5,708
51,718
50,000
5,000
567,183
56,718
27,615
10,000
1,000
286,154
28,615
1,625
10,000
1,000
26,254
2,625
11,406
10,000
1,000
124,056
12,406
12,825
10,000
1,000
138,247
13,825
3,503
35,027
3,503
2,195
10,000
1,000
31,953
3,195
110
50,000
5,000
51,098
5,110
120,163
$
252,000
25,200
$
1,453,627
145,363
87
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(1)
Excludes shares which may be received upon the exercise of
outstanding and exercisable stock options. Based upon the
exchange ratio of 0.8781 of the new holding company shares for
each share of Home Federal Bancorp common stock at the
midpoint of the estimated valuation range, the persons named in
the table would have options to purchase our common stock as
follows: 6,562 shares for each of Messrs. Colquitt,
David Herndon, Humphrey, Lawrence and Wedgeworth, and for
Messrs. Daniel Herndon, Patterson, Barlow, Barber and
Sawrie, 38,197, 22,264, 4,632 and 4,632 shares,
respectively.
(2)
Excludes stock options and awards that may be granted under the
proposed new stock option plan and recognition and retention
plan if such plans are approved by shareholders at an annual or
special meeting of shareholders at least six months following
the conversion and offering. See Management
New Stock Benefit Plans.
88
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Home Federal Mutual Holding Company will convert from mutual to
stock form and simultaneously merge with and into Home Federal
Bancorp, pursuant to which the mutual holding company will cease
to exist and the shares of Home Federal Bancorp common stock
held by the mutual holding company will be canceled; and
Home Federal Bancorp then will merge with and into the new
holding company with the new holding company being the survivor
of the merger.
89
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New
Total
Shares
Shares of
that
New Shares to be
Common
Equivalent
Would be
Exchanged for
Stock to be
per Share
Received
New Shares to be
Existing
Outstanding
Current
for 100
Sold in this Offering
Common Stock
After the
Exchange
Market
Existing
Amount
Percent
Amount
Percent
Offering
Ratio
Value(1)
Shares(2)
1,593,750
63.8
%
904,481
36.2
%
2,498,231
0.7464
$
7.46
74
1,875,000
63.8
1,064,095
36.2
2,939,095
0.8781
8.78
87
2,156,250
63.8
1,223,709
36.2
3,379,959
1.0098
10.10
100
2,479,688
63.8
1,407,266
36.2
3,886,954
1.1612
11.61
116
(1)
Represents the value of shares of Home Federal Bancorp common
stock received in the conversion by a holder of one share of
Home Federal Bancorp at the exchange ratio, assuming the market
price of $10.00 per share.
(2)
Cash will be paid instead of issuing fractional shares.
90
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1,593,750 Shares
1,875,000 Shares
2,479,688 Shares
Issued at
Issued at
2,156,250 Shares Issued at
Issued at Adjusted
Minimum of
Midpoint of
Maximum of
Maximum of
Offering Range
Offering Range
Offering Range
Offering Range(1)
Percent of
Percent of
Percent
Percent
Amount
Total
Amount
Total
Amount
of Total
Amount
of Total
2,498,231
100.0
%
2,939,095
100.0
%
3,379,959
100.0
%
3,886,954
100.0
%
1,593,750
63.8
1,875,000
63.8
2,156,250
63.8
2,479,688
63.8
904,481
36.2
1,064,095
36.2
1,223,709
36.2
1,407,266
36.2
2,498,231
100.0
%
2,939,095
100.0
%
3,379,959
100.0
%
3,886,954
100.0
%
(1)
As adjusted to give effect to an increase in the number of
shares that could occur due to an increase in the offering range
up to approximately 15% to reflect changes in market and
financial conditions before the conversion and offering is
completed.
91
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92
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93
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$500,000 (50,000 shares) of common stock; or
15 times the product, rounded down to the next whole number,
obtained by multiplying the total number of shares of common
stock offered in the subscription offering by a fraction, of
which the numerator is the amount of the eligible account
holders qualifying deposit and the denominator of which is
the total amount of qualifying deposits of all eligible account
holders, in each case as of the close of business on the
eligibility record date, June 30, 2009, subject to the
overall purchase and ownership limitations. See
Limitations on Common Stock Purchases.
94
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$500,000 (50,000 shares) of common stock; or
15 times the product, rounded down to the next whole number,
obtained by multiplying the total number of shares of common
stock offered in the subscription offering by a fraction, of
which the numerator is the amount of the supplemental eligible
account holders qualifying deposit and the denominator of
which is the total amount of qualifying deposits of all
supplemental eligible account holders, in each case as of the
close of business on the supplemental eligibility record date,
[DATE3], 2010, subject to the overall purchase and ownership
limitations. See Limitations on Common Stock
Purchases.
95
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96
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97
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Home Federal Bancorps present and projected operating
results and financial condition and the economic and demographic
conditions in Home Federal Banks existing market area;
certain historical, financial and other information relating to
Home Federal Bancorp;
a comparative evaluation of the operating and financial
statistics of Home Federal Bancorp with those of other similarly
situated publicly-traded companies located in Louisiana and
other regions of the United States;
the aggregate size of the offering of Home Federal Bancorp
common stock;
the impact of the conversion and offering on Home Federal
Banks net worth and earnings potential;
Home Federal Bancorps proposed dividend policy; and
the trading market for Home Federal Bancorp common stock and
securities of comparable companies and general conditions in the
market for such securities.
assets averaging $393.0 million;
non-performing assets averaging 3.55% of total assets;
98
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equity equal to 10.98% of assets; and
price/core earnings ratios equal to an average of 21.7x and
ranging from 10.0x to 33.8x.
Price to Earnings
Price to
Price to Tangible Book
Multiple
Book Value Ratio
Value Ratio
41.7
x
53.9
%
53.9
%
50.0
x
60.3
60.3
58.8
x
66.1
66.1
66.7
x
72.0
72.0
23.7
x
73.0
%
78.9
%
17.9
x
74.5
75.9
15.3
x
71.0
%
79.2
%
13.7
x
71.3
77.0
(1)
Ratios are based on book value as of June 30, 2010 and
share prices as of August 27, 2010.
99
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100
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101
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to fill the employee stock ownership plans subscription of
6.0% of the adjusted maximum number of shares;
in the event that there is an oversubscription by eligible
account holders, to fill unfulfilled subscriptions of eligible
account holders;
in the event that there is an oversubscription by supplemental
eligible account holders, to fill unfulfilled subscriptions of
supplemental eligible account holders;
in the event that there is an oversubscription by other members,
to fill unfulfilled subscriptions of other members; and
to fill unfulfilled subscriptions in the community offering.
102
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acting as our financial advisor for the conversion and offering;
providing administrative services and managing the Stock
Information Center;
educating our employees regarding the offering;
targeting our sales efforts, including assisting in the
preparation of marketing materials; and
soliciting orders for common stock.
103
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104
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105
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Personal check, bank check or money order made payable directly
to Home Federal Bancorp, Inc. of Louisiana; or
Authorization of withdrawal from the types of Home Federal Bank
deposit accounts permitted on the stock order form.
106
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the number of persons otherwise eligible to subscribe for shares
under the Plan of Conversion and Reorganization who reside in
such jurisdiction is small;
the granting of subscription rights or the offer or sale of
shares of common stock to such persons would require any of us
or our officers, directors or employees, under the laws of such
jurisdiction, to register as a broker, dealer, salesman or
selling agent or to register or otherwise qualify our securities
for sale in such jurisdiction or to qualify a foreign
corporation or file a consent to service of process in such
jurisdiction; or
such registration, qualification or filing in our judgment would
be impracticable or unduly burdensome for reasons of costs or
otherwise.
107
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108
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109
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110
Table of Contents
111
Table of Contents
112
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113
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AND HOME FEDERAL BANK AND RELATED ANTI-TAKEOVER
PROVISIONS
that our board of directors is divided into classes with only
one-third of our directors standing for reelection each year;
that no person shall directly or indirectly acquire or offer to
acquire beneficial ownership of more than 10% of the issued and
outstanding shares of any class of voting securities of Home
Federal Bancorp;
that special meetings of shareholders may be called by
shareholders who beneficially own at least 50% of the
outstanding voting shares of Home Federal Bancorp;
that shareholders generally must provide us advance notice of
shareholder proposals and director nominations and provide
certain specified related information; and
the authority to issue shares of authorized but unissued common
stock and preferred stock and to establish the terms of any one
or more series of preferred stock, including voting rights,
without additional shareholder approval.
rights of shareholders to receive the fair value for their
shares following a control transaction from a controlling person
or group; and
a supermajority voting requirement for a business combination
with an interested shareholder (defined generally as
the beneficial owner of 10% or more of the corporations
outstanding shares) unless certain minimum price and procedural
safeguards are satisfied.
114
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convicted of a felony or an offense punishable by imprisonment
for a term of more than one year by a court of competent
jurisdiction; or
deemed liable by a court of competent jurisdiction for gross
negligence or misconduct in the performance of duties to Home
Federal Bancorp.
115
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116
Table of Contents
117
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118
Table of Contents
any offer with a view toward public resale made exclusively to
the institution or to underwriters or a selling group acting on
its behalf;
offers that if consummated would not result in the acquisition
by such person during the preceding
12-month
period of more than 1% of such stock;
offers in the aggregate for up to 24.9% by the employee stock
ownership plan or other tax-qualified plans of Home Federal
Bancorp or Home Federal Bank; and
an offer to acquire or acquisition of beneficial ownership of
more than 10% of the common stock of the savings institution by
a corporation whose ownership is or will be substantially the
same as the ownership of the savings institution, provided that
the offer or acquisition is made more than one year following
the date of completion of the conversion and offering.
119
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120
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121
Page No.
F-2
F-3
F-4
F-5
F-6
F-7
F-8
F-1
Table of Contents
F-2
Table of Contents
2010
2009
(In thousands)
$
8,837
$
10,007
63,688
92,647
2,138
2,184
13,403
1,277
93,056
46,948
560
543
3,049
982
414
178
$
185,145
$
154,766
LIABILITIES AND STOCKHOLDERS EQUITY
$
117,722
$
86,146
205
137
31,507
35,997
1,425
1,082
921
94
151,780
123,456
14
14
13,655
13,608
(2,094
)
(1,887
)
(826
)
(883
)
(145
)
(269
)
20,665
20,288
2,096
439
33,365
31,310
$
185,145
$
154,766
F-3
Table of Contents
2010
2009
(In thousands, except per share data)
$
5,218
$
2,238
3,874
5,221
69
112
8
25
9,169
7,596
2,238
2,463
1,220
1,375
3,458
3,838
5,711
3,758
36
240
5,675
3,518
644
2
796
325
55
36
(627
)
(4
)
864
363
3,383
1,783
406
230
150
150
133
1,257
817
5,196
3,113
1,343
768
673
253
$
670
$
515
$
0.21
$
0.16
$
0.21
$
0.16
F-4
Table of Contents
2010
2009
(In thousands)
$
670
$
515
1,968
3,480
(311
)
(407
)
1,657
3,073
$
2,327
$
3,588
F-5
Table of Contents
Accumulated
Additional
Unearned
Other
Unearned
Total
Common
Paid-In
ESOP
Retained
Comprehensive
RRP Trust
Treasury
Stockholders
Stock
Capital
Stock
Earnings
Income (Loss)
Stock
Stock
Equity
(In thousands)
$
14
$
13,567
$
(940
)
$
20,071
$
(2,634
)
$
(395
)
$
(1,809
)
$
27,874
(16
)
57
41
126
126
(298
)
(298
)
57
57
(78
)
(78
)
515
515
3,073
3,073
14
13,608
(883
)
20,288
439
(269
)
(1,887
)
31,310
(10
)
57
47
124
124
(293
)
(293
)
57
57
(207
)
(207
)
670
670
1,657
1,657
$
14
$
13,655
$
(826
)
$
20,665
$
2,096
$
(145
)
$
(2,094
)
$
33,365
F-6
Table of Contents
2010
2009
(In thousands)
$
670
$
515
(644
)
(2
)
4
(302
)
(290
)
(275
)
(18
)
36
240
126
71
(796
)
(325
)
47
41
(27
)
203
57
57
118
125
627
(83,679
)
(16,582
)
72,198
16,159
(17
)
8
(249
)
(125
)
348
229
(11,758
)
306
(46,275
)
(18,923
)
174
419
25
(2,371
)
(172
)
17,466
19,373
14,474
13,842
(24,269
)
81
114
(34
)
(610
)
42
(16,066
)
(10,578
)
31,576
7,786
21,000
47,950
(25,490
)
(38,829
)
(293
)
(298
)
(207
)
(78
)
68
(40
)
4,556
(8,131
)
26,654
12,916
(1,170
)
2,644
10,007
7,363
$
8,837
$
10,007
$
3,501
$
3,826
614
89
2,511
4,655
F-7
Table of Contents
Note 1.
Summary
of Significant Accounting Policies
F-8
Table of Contents
Note 1.
Summary
of Significant Accounting
Policies
(Continued)
2010
2009
(In thousands)
$
320
$
406
6,625
4,919
1,892
4,682
$
8,837
$
10,007
F-9
Table of Contents
Note 1.
Summary
of Significant Accounting
Policies
(Continued)
10-40 Years
3-10 Years
F-10
Table of Contents
Note 1.
Summary
of Significant Accounting
Policies
(Continued)
F-11
Table of Contents
Note 1.
Summary
of Significant Accounting
Policies
(Continued)
2010
2009
(In thousands)
$
2,982
$
5,271
(471
)
(616
)
2,511
4,655
(854
)
(1,582
)
$
1,657
$
3,073
2010
2009
(In thousands)
$
3,176
$
665
(1,080
)
(226
)
$
2,096
$
439
F-12
Table of Contents
Note 1.
Summary
of Significant Accounting
Policies
(Continued)
F-13
Table of Contents
Note 2.
Securities
June 30, 2010
Gross
Gross
Amortized
Unrealized
Unrealized
Fair
Cost
Gains
Losses
Value
(In thousands)
$
3,031
$
175
$
$
3,206
55,828
2,980
58,808
115
1
1
115
58,974
3,156
1
62,129
1,538
21
1,559
$
60,512
$
3,177
$
1
$
63,688
$
196
$
22
$
$
218
75
2
77
27
1
28
298
25
323
1,840
1,840
$
2,138
$
25
$
$
2,163
June 30, 2009
Gross
Gross
Amortized
Unrealized
Unrealized
Fair
Cost
Gains
Losses
Value
(In thousands)
$
14,237
$
333
$
10
$
14,560
75,194
1,197
166
76,225
136
1
2
135
89,567
1,531
178
90,920
2,415
688
1,727
$
91,982
$
1,531
$
866
$
92,647
$
260
$
10
$
$
270
88
1
89
30
30
378
11
389
1,806
1,806
$
2,184
$
11
$
$
2,195
F-14
Table of Contents
Note 2.
Securities
(Continued)
Available-for-Sale
Held-to-Maturity
Amortized
Fair
Amortized
Fair
Cost
Value
Cost
Value
(In thousands)
$
$
$
8
$
8
5
5
723
738
120
128
58,251
61,391
165
182
$
58,974
$
62,129
$
298
$
323
June 30, 2010
Less than Twelve Months
Over Twelve Months
Gross
Gross
Unrealized
Fair
Unrealized
Fair
Losses
Value
Losses
Value
(In thousands)
$
$
$
1
$
89
$
$
$
1
$
89
June 30, 2009
Less than Twelve Months
Over Twelve Months
Gross
Gross
Unrealized
Fair
Unrealized
Fair
Losses
Value
Losses
Value
(In thousands)
$
10
$
864
$
168
$
23,801
688
1,727
$
10
$
864
$
856
$
25,528
F-15
Table of Contents
Note 2.
Securities
(Continued)
Note 3.
Loans
Receivable
2010
2009
(In thousands)
$
36,257
$
22,106
15,422
8,193
9,079
4,884
60,758
35,183
25,689
6,590
2,963
4,914
285
359
4,069
451
48
40
7,365
5,764
93,812
47,537
(489
)
(466
)
(267
)
(123
)
$
93,056
$
46,948
2010
2009
(In thousands)
$
466
$
235
36
240
(13
)
(9
)
$
489
$
466
Under
One
Six
Over
One
to Five
to Ten
Ten
Year
Years
Years
Years
Total
$
1,275
$
16,947
$
854
$
8,286
$
27,362
84
404
8,407
8,895
5,541
20,704
1,230
4,819
32,294
9,142
15,694
425
25,261
$
15,958
$
53,429
$
2,913
$
21,512
$
93,812
F-16
Table of Contents
Note 3.
Loans
Receivable
(Continued)
Note 4.
Accrued
Interest Receivable
2010
2009
(In thousands)
$
214
$
156
109
26
2
1
235
360
$
560
$
543
Note 5.
Premises
and Equipment
2010
2009
(In thousands)
$
2,051
$
727
1,224
1,183
791
725
4,066
2,635
(1,017
)
(1,653
)
$
3,049
$
982
F-17
Table of Contents
Note 5.
Premises
and
Equipment
(Continued)
Year Ended June 30,
Amount
$
103,744
103,719
72,864
76,144
76,144
134,929
$
567,544
Note 6.
Deposits
Weighted
Weighted
Average
Average
Rate at
Rate at
2010
2009
6/30/2010
6/30/2009
Amount
Percent
Amount
Percent
(Dollars in thousands)
0.00
%
0.00
%
$
9,890
8.40
%
$
2,222
2.58
%
0.12
%
0.19
%
8,240
7.00
6,315
7.33
1.19
%
1.40
%
20,436
17.36
8,752
10.16
0.42
%
0.50
%
5,266
4.47
6,056
7.03
43,832
37.23
23,345
27.10
2.66
%
3.43
%
73,890
62.77
62,801
72.90
$
117,722
100.00
%
$
86,146
100.00
%
2010
2009
Amount
Percent
Amount
Percent
(Dollars in thousands)
$
12
0.02
%
$
134
0.21
%
30,309
41.02
11,970
19.06
16,734
22.65
13,030
20.75
17,497
23.68
21,405
34.08
7,865
10.64
12,990
20.69
1,473
1.99
3,272
5.21
$
73,890
100.00
%
$
62,801
100.00
%
F-18
Table of Contents
Note 6.
Deposits
(Continued)
Weighted
Average
Year Ending June 30,
Amount
Percent
Rate
(Dollars in thousands)
$
38,369
51.93
%
2.2
%
17,072
23.10
3.0
%
7,061
9.56
3.4
%
2,574
3.48
3.6
%
8,814
11.93
3.3
%
$
73,890
100.00
%
2010
2009
(In thousands)
$
205
$
59
23
26
2,010
2,378
$
2,238
$
2,463
Note 7.
Advances
from Federal Home Loan Bank of Dallas
Advance Total
Contract Rate
2010
2009
(In thousands)
$
1,500
$
4,000
2,000
4,203
5,462
9,763
12,468
7,910
9,654
4,131
6,413
$
31,507
$
35,997
F-19
Table of Contents
Note 7.
Advances
from Federal Home Loan Bank of
Dallas
(Continued)
Years Ended June 30,
Amount
$
9,616
11,422
5,907
1,915
236
2,411
$
31,507
Note 8.
Commitments
Years Ended June 30,
Amount
$
48
48
48
48
28
$
220
Years Ended June 30,
Amount
$
291
291
155
$
737
F-20
Table of Contents
Note 9.
Income
Taxes
2010
2009
(In thousands)
$
700
$
50
(27
)
203
$
673
$
253
2010
2009
(In thousands)
$
457
$
261
214
2
(8
)
$
673
$
253
2010
2009
(In thousands)
$
100
$
80
60
52
185
345
132
(185
)
160
132
(1,081
)
(226
)
$
(921
)
$
(94
)
F-21
Table of Contents
Note 9.
Income
Taxes
(Continued)
Note 10.
Other
Non-Interest Income and Expense
2010
2009
(In thousands)
$
30
$
18
14
14
11
4
$
55
$
36
$
203
$
131
174
122
136
35
112
77
91
75
86
42
78
63
67
6
64
78
63
48
46
32
43
27
37
34
30
23
13
10
7
11
7
3
$
1,257
$
817
F-22
Table of Contents
Note 11.
Retirement
Plans
Note 12.
Employee
Stock Ownership Plan
2010
2009
28,472
19,930
2,847
2,847
82,568
91,110
113,887
113,887
$
661
$
615
$
8.00
$
6.75
Note 13.
Recognition
and Retention Plan
F-23
Table of Contents
Note 13.
Recognition
and Retention
Plan
(Continued)
Unawarded Shares
Awarded Shares
2010
2009
2010
2009
2,290
1,952
25,214
38,333
793
338
(793
)
(338
)
(12,611
)
(12,781
)
3,083
2,290
11,810
25,214
Note 14.
Stock
Option Plan
F-24
Table of Contents
Note 14.
Stock
Option
Plan
(Continued)
Weighted
Weighted
Average
Average
Remaining
Aggregate
Number of
Exercise
Contract
Intrinsic
Shares
Price
Term
Value
158,134
$
9.85
(1,960
)
156,174
$
9.85
5.13
$
126,507
$
9.85
5.13
$
169,762
$
9.85
(11,628
)
158,134
$
9.85
6.13
$
105,858
$
9.85
6.13
$
2.0
%
10 Years
4.13
%
10 Years
8.59
%
Weighted
Average
Number of
Grant-Date
Shares
Fair Value
52,276
$
9.85
(20,649
)
9.85
(1,960
)
9.85
29,667
$
9.85
Note 15.
Off-Balance
Sheet Activities
F-25
Table of Contents
Note 15.
Off-Balance
Sheet
Activities
(Continued)
Contract Amount
2010
2009
(In thousands)
$
14,226
$
6,935
5,159
3,672
$
19,385
$
10,607
$
19,385
$
10,607
$
19,385
$
10,607
F-26
Table of Contents
Note 15.
Off-Balance
Sheet
Activities
(Continued)
Note 16.
Related
Party Events
2010
2009
(In thousands)
$
1,621
$
430
73
1,329
(202
)
(138
)
$
1,492
$
1,621
Note 17.
Merger
and Stock Issuance Costs
Note 18.
Regulatory
Matters
F-27
Table of Contents
Note 18.
Regulatory
Matters
(Continued)
Required for Capital
Actual
Adequacy Purposes
Amount
Ratio
Amount
Ratio
(Dollars in thousands)
(1
)
$
29,989
16.47
%
$
5,462
3.00
%
(1
)
29,989
16.47
%
2,731
1.50
%
(2
)
30,478
33.67
%
7,241
8.00
%
(1
)
$
29,163
18.93
%
$
4,623
3.00
%
(1
)
29,163
18.93
%
2,311
1.50
%
(2
)
29,629
54.77
%
4,328
8.00
%
Required to be
Actual
Well Capitalized
Amount
Ratio
Amount
Ratio
(Dollars in thousands)
(1
)
$
29,989
16.47
%
$
9,103
5.00
%
(2
)
29,989
33.13
%
5,431
6.00
%
(2
)
30,478
33.67
%
9,051
10.00
%
(1
)
$
29,163
18.93
%
$
7,704
5.00
%
(2
)
29,163
53.91
%
3,246
6.00
%
(2
)
29,629
54.77
%
5,410
10.00
%
(1)
Amounts and Ratios to Adjusted Total Assets
(2)
Amounts and Ratios to Total Risk-Weighted Assets
F-28
Table of Contents
Note 18.
Regulatory
Matters
(Continued)
Minimum for Capital
Actual
Adequacy Purposes
June 30, 2010
Ratio
Amount
Ratio
Amount
(Dollars in thousands)
17.38
%
$
32,206
(121
)
(2,096
)
16.47
%
$
29,989
1.5
%
$
2,731
16.47
%
$
29,989
3.0
%
$
5,462
33.13
%
$
29,989
489
33.67
%
$
30,478
8.0
%
$
7,241
$
185,350
$
182,053
$
90,514
Minimum for Capital
Actual
Adequacy Purposes
June 30, 2009
Ratio
Amount
Ratio
Amount
(Dollars in thousands)
19.19
%
$
29,723
(121
)
(439
)
18.93
%
$
29,163
1.5
%
$
2,311
18.93
%
$
29,163
3.0
%
$
4,623
53.91
%
$
29,163
466
54.77
%
$
29,629
8.0
%
$
4,328
$
154,872
$
154,086
$
54,095
Note 19.
Restrictions
on Dividends
F-29
Table of Contents
Note 20.
Fair
Value of Financial Instruments
F-30
Table of Contents
Note 20.
Fair
Value of Financial
Instruments
(Continued)
2010
2009
Carrying
Estimated
Carrying
Estimated
Value
Fair Value
Value
Fair Value
(In thousands)
(In thousands)
$
8,837
$
8,837
$
10,007
$
10,007
63,688
63,688
92,647
92,647
2,138
2,163
2,184
2,195
13,403
13,403
1,277
1,277
93,056
109,322
46,948
50,461
117,722
120,460
86,146
88,314
31,507
33,175
35,997
37,088
142
142
69
69
Note 21.
Fair
Value Accounting
Defines fair value as the price that would be received to sell
an asset or paid to transfer a liability, in either case,
through an orderly transaction between market participants at a
measurement date and establishes a framework for measuring fair
value;
Establishes a three-level hierarchy for fair value measurements
based upon the transparency of inputs to the valuation of an
asset or liability as of the measurement date;
Nullifies the guidance in
EITF 02-3,
which required the deferral of profit at inception of a
transaction involving a derivative financial instrument in the
absence of observable data supporting the valuation technique;
Eliminates large position discounts for financial instruments
quoted in active markets and requires consideration of the
companys creditworthiness when valuing
liabilities; and
Expands disclosures about instrument that are measured at fair
value.
Level 1 Fair value is based upon quoted prices
(unadjusted) for identical assets or liabilities in active
markets in which the Company can participate.
F-31
Table of Contents
Note 21.
Fair
Value
Accounting
(Continued)
Level 2 Fair value is based upon
(a) quoted prices for similar assets or liabilities in
active markets; (b) quoted prices for identical or similar
assets or liabilities in markets that are not active, that is,
markets in which there are few transactions for the asset or
liability, the prices are not current, or price quotations vary
substantially either over time or among market makers, or in
which little information is released publicly; (c) inputs
other than quoted prices that are observable for the asset or
liability or (d) inputs that are derived principally from
or corroborated by observable market data by correlation or
other means.
Level 3 Fair value is based upon inputs that
are unobservable for the asset or liability. These inputs
reflect the Companys own assumptions about the assumptions
that market participants would use in pricing the asset or
liability (including assumptions about risk). These inputs are
developed based on the best information available in the
circumstances, which include the Companys own data. The
Companys own data used to develop unobservable inputs are
adjusted if information indicates that market participants would
use different assumptions.
F-32
Table of Contents
Note 21.
Fair
Value
Accounting
(Continued)
Note 22.
Earnings
Per Common Share
2010
2009
3,558,958
3,558,958
(205,381
)
(181,874
)
(85,416
)
(91,110
)
(16,586
)
(29,220
)
3,251,575
3,256,754
3,251,575
3,256,754
Note 23.
Subsequent
Events
F-33
Table of Contents
Note 23.
Subsequent
Events
(Continued)
Note 24.
Parent
Company Financial Statements
2010
2009
(In thousands)
$
888
$
1,125
32,207
29,723
270
462
$
33,365
$
31,310
$
$
33,365
31,310
$
33,365
$
31,310
F-34
Table of Contents
Note 24.
Parent
Company Financial
Statements
(Continued)
2010
2009
(In thousands)
$
825
$
701
50
52
875
753
285
213
133
285
346
590
407
(80
)
(108
)
$
670
$
515
2010
2009
(In thousands)
$
670
$
515
(825
)
(701
)
192
30
(103
)
37
(259
)
226
225
(207
)
(78
)
(293
)
(298
)
(274
)
(151
)
(237
)
(410
)
1,125
1,535
$
888
$
1,125
F-35
Table of Contents
Table of Contents
Table of Contents
(A NEW LOUISIANA CORPORATION)
AND
PROXY STATEMENT OF HOME FEDERAL BANCORP, INC. OF LOUISIANA
(A FEDERAL CORPORATION)
Table of Contents
2A Approval of a provision in the articles of
incorporation of the new holding company providing for the
authorized capital stock of 40,000,000 shares of common
stock and 10,000,000 shares of serial preferred stock
compared to 8,000,000 shares of common stock and
2,000,000 shares of preferred stock in the charter of Home
Federal Bancorp;
2B Approval of a provision in the articles of
incorporation of the new holding company requiring a
super-majority shareholder approval of amendments to certain
provisions in the articles of incorporation and bylaws of the
new holding company; and
2C Approval of a provision in the articles of
incorporation of the new holding company to limit the voting
rights of shares beneficially owned in excess of 10% of the
outstanding voting securities of the new holding company;
The date of this proxy statement/prospectus
is ,
2010, and is first being mailed to
stockholders of Home Federal Bancorp, Inc. of Louisiana on or
about ,
2010.
Table of Contents
624 Market Street
Shreveport, Louisiana 71101
Attention: Investor Relations
(318) 222-1145
(i)
1
4
18
19
19
21
25
25
26
26
28
28
28
28
28
28
28
28
29
29
29
29
29
29
29
29
29
29
32
32
32
32
32
32
32
32
(ii)
Table of Contents
624 Market Street
Shreveport, Louisiana 71101
(318) 222-1145
2A Approval of a provision in the articles of
incorporation of the new holding company providing for the
authorized capital stock of 40,000,000 shares of common
stock and 10,000,000 shares of serial preferred stock
compared to 8,000,000 shares of common stock and
2,000,000 shares of preferred stock in the charter of Home
Federal Bancorp;
2B Approval of a provision in the articles of
incorporation of the new holding company requiring a
super-majority shareholder approval of amendments to certain
provisions in the articles of incorporation and bylaws of the
new holding company; and
2C Approval of a provision in the articles of
incorporation of the new holding company to limit the voting
rights of shares beneficially owned in excess of 10% of the
outstanding voting securities of the new holding company;
Table of Contents
Corporate Secretary
Table of Contents
Q.
What are stockholders being asked to approve?
A.
Home Federal Bancorps stockholders as
of ,
2010 are being asked to vote on the plan of conversion and
reorganization. Under the plan of conversion and reorganization,
Home Federal Bank will convert from the mutual holding company
form of ownership to the fully public stock holding company form
of ownership, and as part of such conversion, a new Louisiana
company, also named Home Federal Bancorp, Inc. of Louisiana will
offer for sale, in the form of shares of it common stock, Home
Federal Mutual Holding Companys 63.8% ownership interest
in Home Federal Bancorp. In addition to the shares of common
stock to be issued to those who purchase shares in the stock
offering, public stockholders of Home Federal Bancorp as of the
completion of the conversion, will receive shares of common
stock of the new holding company in exchange for their existing
shares. In addition, informational proposals relating to the
articles of incorporation of the new holding company are also
described in this proxy statement/prospectus. Due to Office of
Thrift Supervision regulations, the proposed provisions of the
articles of incorporation described in the informational
proposals will become effective if stockholders approve the plan
of conversion and reorganization, regardless of whether
stockholders vote to approve any or all of the informational
proposals.
Q.
What is the conversion?
A.
Home Federal Bank, Home Federal Bancorp and Home Federal Mutual
Holding Company are converting from a mutual holding company
structure to a fully-public ownership structure. Currently, Home
Federal Mutual Holding Company owns 63.8% of Home Federal
Bancorps common stock. The remaining 36.2% of common stock
is owned by public stockholders. As a result of the conversion,
our newly formed Louisiana company, also called Home Federal
Bancorp, Inc. of Louisiana, will become the parent of Home
Federal Bank.
Shares of common stock of the new holding company, representing
the current 63.8% ownership interest of Home Federal Mutual
Holding Company in Home Federal Bancorp, are being offered for
sale to eligible depositors and to the public. At the
completion of the conversion and offering, current public
shareholders of Home Federal Bancorp will exchange their shares
of Home Federal Bancorp common stock for shares of common stock
of the new holding company.
After the conversion and offering are completed, Home Federal
Bank will become a wholly-owned subsidiary of the new holding
company. Upon consummation of the conversion and offering, the
outstanding shares of the new holding company will be owned by
the public stockholders, who will exchange their shares for
shares of the new holding company, as well as those persons who
purchase shares in the offering for the cash purchase price of
$10.00 per share. As a result of the conversion and offering,
Home Federal Mutual Holding Company and Home Federal Bancorp
will cease to exist.
See The Conversion and Offering beginning on
page of this proxy statement/prospectus, for
more information about the conversion.
Q.
What will shareholders receive for their existing Home
Federal Bancorp shares?
A.
As more fully described in the section entitled The
Conversion and Offering, depending on the number of shares
sold in the stock offering, each share of common stock that you
own upon completion of the conversion and stock offering will be
exchanged for between 0.7464 new shares at the minimum and
1.0098 new shares at the maximum of the offering range (cash
will be paid in lieu of fractional shares). For example, if you
own 100 shares of Home Federal Bancorp common stock and the
exchange ratio is 0.8781, after the conversion you will receive
87 shares of common stock of the new holding company and
$8.10 in
1
Table of Contents
cash, the value of the fractional share, based on the $10.00 per
share offering price. Stockholders who hold shares in
street-name at a brokerage firm will receive these funds in
their brokerage account. Stockholders who have stock
certificates will receive checks. The number of shares you will
get will depend on the number of shares sold in the offering and
will be based on an exchange ratio determined as of the closing
of the conversion. The actual number of shares you receive will
depend upon the number of shares we sell in our offering, which
in turn will depend upon the final appraised value of the new
holding company. The exchange ratio will adjust based on the
number of shares sold in the offering. It will not depend on the
market price of the common stock of Home Federal Bancorp.
Q.
What are the reasons for the conversion and offering?
A.
We are pursuing the conversion for the following reasons:
In view of Home Federal Bancorps current operations and
capital level and due to the significant additional capital that
will be raised by Home Federal Bancorp in connection with the
conversion, Home Federal Mutual Holding Company and Home Federal
Bancorp believe that the conversion will result in an
institution whose competitive position will be substantially
improved. We believe that the conversion will enable us to
continue to expand and diversify our loan portfolio, improve our
lending platform, retain management and result in an institution
which will be able to offer the increasingly sophisticated and
broad array of services that are necessary to meet the
convenience and needs of Home Federal Banks customers.
Q.
Why should I vote?
A.
You are not required to vote, but your vote is very important.
In order for us to implement the plan of conversion and
reorganization, we must receive the affirmative vote of the
holders of a majority of the outstanding shares of Home Federal
Bancorp common stock, other than shares held by Home Federal
Mutual
2
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Holding Company, in addition to the approval of two-thirds of
all the outstanding shares.
The board of directors of Home
Federal Bancorp recommends that you vote
FOR
approval of the plan of conversion
and reorganization.
Q.
What happens if I dont vote?
A.
Your prompt vote is very important. Not voting will have the
same effect as voting
Against
the plan
of conversion and reorganization.
Without sufficient
favorable votes FOR the plan of conversion and
reorganization, we will not proceed with the conversion and
offering.
Q.
How do I vote?
A.
You should sign your proxy card and return it in the enclosed
proxy reply envelope.
Please vote promptly. Not voting has
the same effect as voting
Against
the plan of
conversion and reorganization.
Q.
If my shares are held in street name, will my broker
automatically vote on my behalf?
A.
No. Your broker will not be able to vote your shares
without instructions from you. You should instruct your broker
to vote your shares, using the directions that your broker
provides to you.
Q.
What if I do not give voting instructions to my broker?
A.
Your vote is important. If you do not instruct your broker to
vote your shares by proxy, each unvoted share will have the same
effect as a vote against the plan of conversion and
reorganization.
Q.
How will my existing Home Federal Bancorp shares be
exchanged?
A.
The conversion of your shares of common stock of Home Federal
Bancorp into the right to receive shares of common stock of the
new holding company will occur automatically on the effective
date of the conversion, although you will need to exchange your
stock certificate(s) if you hold shares in certificate form. As
soon as practicable after the effective date of the conversion
and reorganization, our exchange agent will send a transmittal
form to you. The transmittal forms are expected to be mailed
promptly after the effective date and will contain instructions
on how to submit the stock certificate(s) representing existing
shares of Home Federal Bancorp common stock. No fractional
shares of common stock of the new holding company will be issued
to you when the conversion is completed. For each fractional
share that would otherwise be issued to a stockholder who holds
a certificate, you will be paid by check an amount equal to the
product obtained by multiplying the fractional share interest to
which you would otherwise be entitled by $10.00. If your shares
are held in street name, you will automatically receive cash in
lieu of fractional shares.
Q.
Should I submit my stock certificates now?
A.
No. If you hold your certificate(s), instructions for
exchanging the shares will be sent to you after completion of
the conversion and offering. If your shares are held in
street name, rather than in certificate form, the
share exchange will occur automatically upon completion of the
conversion and offering.
3
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2A Approval of a provision in the articles of
incorporation of the new holding company providing for the
authorized capital stock of 40,000,000 shares of common
stock and
4
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2B Approval of a provision in the articles of
incorporation of the new holding company requiring a
super-majority shareholder approval of amendments to certain
provisions in the articles of incorporation and bylaws of the
new holding company; and
2C Approval of a provision in the articles of
incorporation of the new holding company to limit the voting
rights of shares beneficially owned in excess of 10% of the
outstanding voting securities of the new holding company;
5
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6
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7
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New
Total
Shares
Shares of
that
New Shares to be
Common
Equivalent
Would be
Exchanged
Stock to be
per Share
Received
New Shares to be Sold in
for Existing
Outstanding
Current
for 100
this Offering
Common Stock
After the
Exchange
Market
Existing
Amount
Percent
Amount
Percent
Offering
Ratio
Value(1)
Shares(2)
1,593,750
63.8
%
904,481
36.2
%
2,498,231
0.7464
$
7.46
74
1,875,000
63.8
1,064,095
36.2
2,939,095
0.8781
8.78
87
2,156,250
63.8
1,223,709
36.2
3,379,959
1.0098
10.10
100
2,479,688
63.8
1,407,266
36.2
3,886,954
1.1612
11.61
116
(1)
Represents the value of shares of Home Federal Bancorp common
stock received in the conversion by a holder of one share of
Home Federal Bancorp at the exchange ratio, assuming the market
price of $10.00 per share.
(2)
Cash will be paid instead of issuing fractional shares.
The additional funds resulting from the offering will support
continued growth and expansion, including opening new branch
offices, hiring and retaining personnel, as well as providing
enhanced lending capability.
8
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The additional shares in our employee stock ownership plan and
the proposed new stock benefit plans will assist us with
retaining and strengthening our management team by providing
competitive compensation.
The stock holding company structure is a more familiar form of
organization, which we believe will make our common stock more
appealing to investors, and will give us greater flexibility to
access the capital markets though possible future equity and
debt offerings, although we have no current plans, agreements or
understandings regarding any additional securities offerings.
To eliminate some of the uncertainties associated with proposed
financial regulatory reforms which may result in changes to our
primary bank regulator and holding company regulator as well as
changes in regulations applicable to us, including, but not
limited to, capital requirements, payment of dividends and
conversion to full stock form.
To improve our capital position during a period of significant
economic uncertainty, especially for the financial services
industry (although, as of June 30, 2010, Home Federal Bank
was considered well capitalized for regulatory
purposes and is not subject to any directive or recommendation
from the Office of Thrift Supervision or the Federal Deposit
Insurance Corporation to raise capital).
We believe that our current mutual holding company structure has
limited our opportunities to acquire other institutions because
we cannot now issue stock in an acquisition in an amount that
would cause Home Federal Mutual Holding Company to own less than
a majority of the outstanding shares of Home Federal Bancorp.
The conversion will facilitate our ability to acquire other
institutions by eliminating this requirement of majority
ownership by our mutual holding company, although we do not
currently have any agreements or understandings regarding any
specific acquisition transaction.
The conversion will increase the number of outstanding shares
held by public shareholders and we expect our stock to have
greater liquidity by being listed on the Nasdaq Global Market.
The plan of conversion and reorganization is approved by at
least a majority of votes eligible to be cast by depositors of
Home Federal Bank;
The plan of conversion and reorganization is approved by at
least:
two-thirds of the outstanding shares of Home Federal Bancorp
common stock; and
a majority of the outstanding shares of Home Federal Bancorp,
not including those shares held by Home Federal Mutual Holding
Company;
We sell at least the minimum number of shares offered in the
offering; and
We receive the final approval of the Office of Thrift
Supervision to complete the conversion and offering and related
transactions.
9
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Home Federal Bancorps historical, present and projected
operating results including, but not limited to, historical
income statement information such as return on assets, return on
equity, net interest margin trends, operating expense ratios,
levels and sources of non-interest income, and levels of loan
loss provisions;
Home Federal Bancorps historical, present and projected
financial condition including, but not limited to, historical
balance sheet size, composition and growth trends, loan
portfolio composition and trends, liability composition and
trends, credit risk measures and trends, and interest rate risk
measures and trends;
the economic, demographic and competitive characteristics of
Home Federal Banks primary market area including, but not
limited to, employment by industry type, unemployment trends,
size and growth of the population, trends in household and per
capita income, deposit market share and largest competitors by
deposit market share;
a comparative evaluation of the operating and financial
statistics of Home Federal Bank with those of other similarly
situated, publicly traded companies, which included a
comparative analysis of balance sheet composition, income
statement ratios, credit risk, interest rate risk and loan
portfolio composition;
the estimated impact of the stock offering on Home Federal
Bancorps consolidated stockholders equity and
earning potential including, but not limited to, the estimated
increase in consolidated equity resulting from the offering, the
estimated increase in earnings resulting from the reinvestment
of the net proceeds of the offering, the estimated impact on the
consolidated equity and earnings resulting from adoption of the
employee benefit plans and the effect of higher consolidated
equity on Home Federal Bancorps future operations; and
the trading market for securities of comparable institutions and
general conditions in the market for such securities.
10
Table of Contents
Price to
Earnings
Price to
Price to Tangible
Multiple
Book Value Ratio
Book Value Ratio
41.7
x
53.9
%
53.9
%
50.0
x
60.3
60.3
58.8
x
66.1
66.1
66.7
x
72.0
72.0
23.7
x
73.0
%
78.9
%
17.9
x
74.5
75.9
15.3
x
71.0
%
79.2
%
13.7
x
71.3
77.0
11
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Price to
Price Performance from Initial Offering Price
Tangible
Through
Closing
Net
Book Value
August 27,
Date
Proceeds
Ratio
1 Day
1 Week
1 Month
2010
(In millions)
07/15/10
$
8.7
59.9
%
6.5
%
5.8
%
3.0
%
(0.1
)%
07/13/10
19.0
64.7
0.5
(1.6
)
(2.6
)
(1.5
)
07/07/10
26.5
97.8
(6.3
)
(3.1
)
(1.3
)
(2.8
)
07/07/10
166.8
93.9
(5.0
)
(2.9
)
(3.0
)
(8.3
)
06/29/10
76.6
72.6
(4.1
)
(3.7
)
(1.8
)
(3.2
)
06/24/10
364.7
90.6
3.1
(0.9
)
(3.9
)
04/05/10
19.9
81.2
5.5
5.0
4.0
(8.5
)
12/21/09
26.9
63.0
7.5
11.9
13.1
33.8
12/18/09
603.0
103.8
13.5
13.0
14.0
10.3
N/A
145.8
80.8
2.4
2.7
2.7
1.8
N/A
26.9
81.2
3.1
(0.9
)
(2.8
)
*
Transaction involved a simultaneous acquisition.
12
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Full-time employees, including officers, will be participants in
our existing employee stock ownership plan which will purchase
additional shares in connection with the conversion;
Subsequent to completion of the conversion and offering, we
intend to implement the following plans which will benefit our
employees and directors:
a new stock recognition and retention plan; and
a new stock option plan.
Value of
99,188 Shares
63,750 Shares
75,000 Shares
86,250 Shares
Awarded at 15%
Awarded
Awarded
Awarded at
Above
at Minimum
at Midpoint
Maximum
Maximum
of Offering Range
of Offering Range
of Offering Range
of Offering Range
(Dollars in thousands)
$
510
$
600
$
690
$
794
638
750
863
992
765
900
1,035
1,190
893
1,050
1,208
1,389
13
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Value of
159,375
187,500
215,625
247,969
Options
Options
Options
Options
Granted at
Granted at
Granted at
Granted at 15%
Per Share
Per Share
Minimum of
Midpoint of
Maximum of
Above Maximum of
Option Value
Offering Range
Offering Range
Offering Range
Offering Range
(Dollars in thousands, except per share amounts)
$
1.93
$
308
$
362
$
416
$
479
2.42
386
454
522
600
2.90
462
544
625
719
3.38
539
634
729
838
Number of Shares to be Granted or Purchased
Dilution
As a % of
Resulting
Value of Grants At
At Minimum
At Maximum
Common Stock
From
Minimum
Maximum
of Offering
of Offering
to Be Sold in the
Issuance of
of Offering
of Offering
Range
Range
Offering
Shares(3)
Range
Range
(Dollars in thousands)
95,625
129,375
6.00
%
%
$
959
$
1,294
63,750
86,250
4.00
2.34
638
863
159,375
215,625
10.00
5.86
385
521
318,750
431,250
20.00
%
8.20
%
$
979
$
2,677
(1)
Assumes the value of the new holding companys common stock
is $10.00 per share for purposes of determining the total
estimated value of the grants.
(2)
Assumes the value of a stock option is $2.42, which was
determined using the Black-Scholes option-pricing formula. See
Pro Forma Data.
(3)
Represents the dilution of stock ownership interest. No dilution
is reflected for the employee ownership because such shares are
assumed to be purchased in the offering.
14
Table of Contents
Percentage of
Estimated
Total Shares
Participants
Shares(1)
Value
Outstanding
(Dollars in Thousands)
All Employees
115,005
(2)
$
1,150
3.4
%
129,375
1,294
3.8
%
244,380
2,444
7.2
%
Directors and Officers
70,440
704
2.1
%
86,250
(3)
863
2.6
%
156,690
(4)
1,567
4.6
%
Directors and Officers
176,098
(5)
426
(6)
5.2
%
215,625
521
(7)
6.4
%
391,723
947
11.6
%
792,793
$
4,957
23.5
%
(1)
Shares purchased or awarded and options granted prior to the
conversion and offering have been adjusted for the 1.0098
exchange ratio at the maximum of the offering range for shares
of Home Federal Bancorp.
(2)
Approximately 28,751 (28,472 shares prior to adjustment for
the exchange ratio) of these shares have been allocated to the
accounts of participants. The employee stock ownership plan
purchased 8.0% (113,889 shares) of the shares issued to
other than Home Federal Mutual Holding Company
(1,423,583 shares) in the mutual holding company
reorganization completed in January 2005.
(3)
Home Federal Bancorp reserved 69,756 shares (before
applying exchange ratio) which reflected an amount equal to 4.0%
of the shares that would have been issued to persons other than
Home Federal Mutual Holding Company in the mutual holding
company reorganization if Home Federal Bancorp had issued 49%
(1,743,889 shares) of the total shares issued in the
reorganization (3,558,958 shares) to minority shareholders
rather than 40% actually issued to such persons
(1,423,583 shares). As of June 30, 2010, awards
covering 158,134 (159,683 shares after adjustment for the
exchange ratio) of the indicated 2005 Recognition and Retention
Plan awards have vested, and the shares of Home Federal Bancorp
common stock subject to these vested awards have been
distributed.
15
Table of Contents
(4)
The actual value of new recognition and retention plan awards
will be determined based on their fair value as of the date
grants are made. For purposes of this table, fair value is
assumed to be the same as the offering price of $10.00 per share.
(5)
Of this amount, no options have been exercised to date, and all
previously granted options remain outstanding. Home Federal
Bancorp reserved 174,389 shares (before applying exchange
ratio) under this plan which reflected 10.0% of the shares that
would have been issued to persons other than Home Federal Mutual
Holding Company in the mutual holding company reorganization if
Home Federal Bancorp had issued 49% (1,743,889 shares) of
the total shares issued in the reorganization
(3,558,958 shares) to minority shareholders rather than the
40% actually issued to such persons (1,423,583 shares). As
of June 30, 2010, options covering 158,134 shares
(before applying the exchange ratio) were issued and outstanding.
(6)
The weighted-average fair value of stock options under the 2005
Stock Option Plan has been estimated at $2.42 using the
Black-Scholes option pricing model and assumes that all options
have been granted and are outstanding. Prior to the adjustment
for exchange ratio, the 2005 Stock Option Plan covered a total
of 174,389 shares. The weighted-average assumptions used
for the options issued in 2005 under the 2005 Stock Option Plan
were the following: exercise price, $10.00; dividend yield,
2.4%; expected life, 10 years; expected volatility, 23.23%;
and risk-free interest rate, 2.97%.
(7)
The fair value of stock options to be granted under the new
stock option plan has been estimated at $2.42 per option using
the Black-Scholes option pricing model with the following
assumptions: exercise price, $10.00; trading price on date of
grant, $10.00; dividend yield, 2.4%; expected life,
10 years; expected volatility, 23.23%; and risk-free
interest rate, 2.97%.
16
Table of Contents
restrictions on the acquisition of more than 10% of our common
stock and limitations on voting rights of shares held in excess
of 10%;
staggered election of only approximately one-third of our board
of directors each year;
the absence of cumulative voting by shareholders in the election
of directors;
limitations on the ability of shareholders to call special
meetings;
advance notice requirements for shareholder nominations and new
business;
removal of directors without cause by a 75% vote of shareholders
and with cause by a majority vote of all shareholders;
requirement of a 75% vote of shareholders for certain amendments
to the bylaws and certain provisions of the articles of
incorporation;
supermajority vote requirements for the approval of certain
business combinations not approved by the board of
directors; and
the right of the board of directors to issue shares of preferred
or common stock without shareholder approval.
17
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18
Table of Contents
Home Federal Mutual Holding Company will convert from mutual to
stock form and simultaneously merge with and into Home Federal
Bancorp, pursuant to which the mutual holding company will cease
to exist and the shares of Home Federal Bancorp common stock
held by the mutual holding company will be canceled; and
Home Federal Bancorp then will merge with and into the new
holding company with the new holding company being the survivor
of such merger.
19
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20
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filing a written revocation of the proxy with the corporate
secretary of Home Federal Bancorp;
submitting a signed proxy card bearing a later date; or
attending and voting in person at the special meeting, but you
also must file a written revocation at the meeting with the
corporate secretary of Home Federal Bancorp prior to the voting.
21
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22
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the total number of shares of common stock to be issued in the
conversion and offering;
the total shares of common stock outstanding after the
conversion and offering;
the exchange ratio; and
New
Total
Shares
Shares of
that
New Shares to be
Common
Equivalent
would be
Exchanged
Stock to be
per Share
Received
New Shares to be Sold
for Existing
Outstanding
Current
for 100
in this Offering
Common Stock
after the
Exchange
Market
Existing
Amount
Percent
Amount
Percent
Offering
Ratio
Value(1)
Shares(2)
1,593,750
63.8
%
904,481
36.2
%
2,498,231
0.7464
$
7.46
74
1,875,000
63.8
1,064,095
36.2
2,939,095
0.8781
8.78
87
2,156,250
63.8
1,223,709
36.2
3,379,959
1.0098
10.10
100
2,479,688
63.8
1,407,266
36.2
3,886,954
1.1612
11.61
116
(1)
Represents the value of shares of Home Federal Bancorp common
stock received in the conversion by a holder of one share of
Home Federal Bancorp at the exchange ratio, assuming the market
price of $10.00 per share.
(2)
Cash will be paid instead of issuing any fractional shares.
23
Table of Contents
24
Table of Contents
TO THE ARTICLES OF INCORPORATION OF THE NEW HOLDING
COMPANY.
25
Table of Contents
26
Table of Contents
27
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FINANCIAL CONDITION AND RESULTS OF OPERATIONS
28
Table of Contents
29
Table of Contents
30
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HOME FEDERAL BANK AND RELATED ANTI-TAKEOVER PROVISIONS
31
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32
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Item 13.
Other
Expenses of Issuance and Distribution.
$
2,772
12,000
125,000
4,400
85,000
300,000
5,000
50,000
38,000
25,000
185,000
30,000
20,000
20,000
7,000
40,828
$
950,000
*
Estimated
(1)
In addition to the foregoing expenses, Stifel,
Nicolaus & Company, Incorporated will receive fees
based on the number of shares sold in the conversion and
offering. Based upon the assumptions and the information set
forth under Pro Forma Data and The Conversion
and Offering Marketing Arrangements in the
Prospectus, it is estimated that such fees will be $545,730,
$642,480, $739,230 and $850,493 at the minimum, minimum,
midpoint, maximum and maximum, as adjusted, of the offering
range, respectively.
Item 14.
Indemnification
of Directors and Officers.
II-1
Table of Contents
Item 15.
Recent
Sales of Unregistered Securities
II-2
Table of Contents
Item 16.
Exhibits
and Financial Statement Schedules
(1)
To be filed by amendment.
(2)
Incorporated herein by reference from Home Federal Bancorp, Inc.
of Louisianas Definitive Schedule 14A filed with the
SEC on June 29, 2005 (File
No. 000-51117).
(3)
Incorporated herein by reference from Home Federal Bancorp, Inc.
of Louisianas Current Report on
Form 8-K
filed with the SEC on February 23, 2009 (File No.
000-51117).
(4)
Incorporated by reference from Home Federal Bancorp, Inc. of
Louisianas Current Report
Form 8-K
filed with the SEC on January 19, 2010 (File
No. 000-51117).
II-3
Table of Contents
Item 17.
Undertakings.
II-4
Table of Contents
II-5
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By:
Chairman of the Board, President and Chief Executive Officer
(principal executive officer)
September 3, 2010
Director, Executive Vice President and Chief Operating Officer
September 3, 2010
Director
September 3, 2010
Director
September 3, 2010
Director
September 3, 2010
Director
September 3, 2010
Director, Executive Vice President and Chief Financial Officer
(principal financial and accounting officer)
September 3, 2010
Director
September 3, 2010
II-6
Table of Contents
Director
September 3, 2010
Director
September 3, 2010
II-7
Re: | Proposed Second Step Conversion Advisory, Administrative and Marketing Services |
Mr. James R. Barlow | April 16, 2010 | |
Home Federal Mutual Holding Company of Louisiana | Page 2 | |
Home Federal Bancorp, Inc. of Louisiana | ||
Home Federal Bank |
a. | Advisory Services Stifel Nicolaus will work with the Company and its counsel to evaluate financial, marketing and regulatory issues. | ||
Our advisory services include: |
| Advice with respect to business planning issues in preparation for a public offering; | ||
| Advice with respect to the choice of charter and form of organization; | ||
| Review and advice with respect to the Plan (e.g. sizes of benefit plan purchases; maximum purchase limits for investors); | ||
| Review and input with respect to the business plan to be prepared in connection with the Conversion and Offering; | ||
| Discussion of the appraisal process and analysis of the appraisal with the Board of Directors and management; | ||
| Participation in drafting the offering disclosure documents and any proxy materials, and assistance in obtaining all requisite regulatory approvals; | ||
| Developing a marketing plan for the subscription and community offerings, considering various sales method options, including direct mail, advertising, community meetings and telephone solicitation; | ||
| Working with the Company to provide specifications and assistance (including recommendations) in selecting certain other professionals that will perform functions in connection with the Conversion and Offering process. Fees and expenses of financial printers, transfer agent and other service providers will be borne by the Company, subject to agreements between the Company and the service providers; | ||
| Developing a depositor proxy solicitation plan; | ||
| Developing a strategy for the subscription and community offering, including the location of the Stock Information Center (the Center); | ||
| Assist the company in drafting marketing materials including press releases, letters, stock order form, advertisements, and informational brochures. If a community meeting or road show is anticipated, we will help draft the presentation; and |
Mr. James R. Barlow | April 16, 2010 | |
Home Federal Mutual Holding Company of Louisiana | Page 3 | |
Home Federal Bancorp, Inc. of Louisiana | ||
Home Federal Bank |
| After consulting with management, determine whether and when to conduct a syndicated community offering through assembling a group of selected broker/dealers (including Stifel Nicolaus) to sell stock remaining after the community offering, on a best-effort basis. Alternatively, consulting with management, as it relates to a firm commitment public underwriting, involving Stifel Nicolaus and other broker/dealers. |
b. | Administrative Services and Stock Information Center Management Stifel Nicolaus will manage substantially all aspects of the Offering and depositor vote processes. The Center centralizes all data and work effort relating to the Offering. | ||
Our administrative services include the following: |
| Providing experienced Stifel Nicolaus FINRA registered representatives to manage and supervise the Center; | ||
| Administering the Center. All substantive investor related matters will be handled by employees of Stifel Nicolaus; | ||
| Training and supervising Center staff assisting with order processing; | ||
| Preparing procedures for processing stock orders and cash, and for handling requests for information; | ||
| Educating the Companys directors, officers and employees about the Offering, their roles and relevant securities laws; | ||
| Educating branch managers and customer-contact employees on the proper response to stock purchase inquiries; | ||
| Preparing daily sales reports for management and ensure funds received balance to such reports; | ||
| Coordinating functions with the printer, transfer agent, stock certificate printer and other professionals; | ||
| Coordinating with the Companys stock exchange and the Depository Trust Company to ensure a smooth closing and orderly stock trading; | ||
| Designing and implementing procedures for facilitating orders within IRA and Keogh accounts; and | ||
| Providing post-offering subscriber assistance and management of the pro-ration process, in the event orders exceed shares available in the Offering. |
c. | Securities Marketing Services Stifel Nicolaus uses various sales techniques including direct mail, advertising, community investor meetings, telephone solicitation, and if necessary, assembling a selling group of broker-dealers for a syndicated community offering. | ||
Our securities marketing services include: |
| The Stifel Nicolaus registered representatives at the Center will seek to manage the sales function and, if applicable, will solicit orders from the prospects described above; | ||
| If applicable, assisting management in developing a list of potential investors who are viewed as priority prospects; |
Mr. James R. Barlow | April 16, 2010 | |
Home Federal Mutual Holding Company of Louisiana | Page 4 | |
Home Federal Bancorp, Inc. of Louisiana | ||
Home Federal Bank |
| Responding to investment-related and other questions regarding information in the Offering disclosure documents provided to potential investors; | ||
| If the sales plan calls for community meetings, participating in them; | ||
| Continually advising management on market conditions and the customers/ communitys responsiveness to the Offering; | ||
| In case of a best-efforts syndicated community offering, managing the selling group. Alternatively, managing the underwriters participating in a firm commitment underwritten public offering. In either case, we will prepare broker fact sheets and arrange road shows for the purpose of generating interest in the stock and informing the brokerage community of the particulars of the Offering; and | ||
| Coordinating efforts to maximize after-market support and Company sponsorship. |
a. | An advisory and administrative fee of $30,000 in connection with the advisory and administrative services; the administrative and advisory fee shall be payable as follows: $15,000 upon signing this Agreement and $15,000 upon the initial filing of the Registration Statement. | ||
b. | A fee of one percent (1.00%) of the dollar amount of the Common Stock sold in the subscription and community offerings. No fee shall be payable pursuant to this subsection in connection with the sale of stock to officers, directors, employees or immediate family of such persons (Insiders) and qualified and non-qualified employee benefit plans of the Company or the Insiders. Immediate family includes spouse, parents, siblings and children who live in the same house as the officer, director, or employee. | ||
c. | For Common Stock sold by a group of selected dealers (including Stifel Nicolaus) pursuant to a syndicated community offering solely managed by Stifel Nicolaus (the Selling Group), a fee equal to one percent (1.00%) of the aggregate dollar amount of Common Stock sold in the syndicated community offering, which fee paid to Stifel Nicolaus, along with the fee payable directly by the Company to Stifel Nicolaus and other selected dealers for their sales shall not exceed six percent (6.00%) of the aggregate dollar amount of Common Stock sold, provided Stifel Nicolaus will endeavor to further limit the aggregate fees to be paid by the Company under any such selected dealers agreement to an amount competitive with gross underwriting discounts charged at such time. Alternatively, for stock sold pursuant to a publicly underwritten offering, the underwriting discount will not exceed six percent (6.0%) of the aggregate dollar amount of Common Stock so sold. Stifel Nicolaus will not commence sales of the Common Stock through the Selling Group without the specific prior approval of the Company | ||
d. | If, pursuant to a resolicitation of subscribers undertaken by the Company, Stifel Nicolaus is required to provide significant additional services, the additional compensation due will not exceed $30,000. |
Mr. James R. Barlow | April 16, 2010 | |
Home Federal Mutual Holding Company of Louisiana | Page 5 | |
Home Federal Bancorp, Inc. of Louisiana | ||
Home Federal Bank |
Mr. James R. Barlow | April 16, 2010 | |
Home Federal Mutual Holding Company of Louisiana | Page 6 | |
Home Federal Bancorp, Inc. of Louisiana | ||
Home Federal Bank |
Mr. James R. Barlow | April 16, 2010 | |
Home Federal Mutual Holding Company of Louisiana | Page 7 | |
Home Federal Bancorp, Inc. of Louisiana | ||
Home Federal Bank |
Mr. James R. Barlow | April 16, 2010 | |
Home Federal Mutual Holding Company of Louisiana | Page 8 | |
Home Federal Bancorp, Inc. of Louisiana | ||
Home Federal Bank |
Mr. James R. Barlow | April 16, 2010 | |
Home Federal Mutual Holding Company of Louisiana | Page 9 | |
Home Federal Bancorp, Inc. of Louisiana | ||
Home Federal Bank |
BY | /s/ David P. Lazar | |||
David P. Lazar | ||||
Managing Director | ||||
BY: | /s/ James R. Barlow | |||
James R. Barlow | ||||
President and Chief Operating Officer | ||||
Section | Page | |||||||
1. |
Introduction
|
1 | ||||||
2. |
Definitions
|
2 | ||||||
3. |
General Procedure for Conversion and Reorganization
|
7 | ||||||
4. |
Total Number of Shares and Purchase Price of Conversion Stock
|
8 | ||||||
5. |
Subscription Rights of Eligible Account Holders (First Priority)
|
9 | ||||||
6. |
Subscription Rights of Employee Stock Ownership Plan (Second Priority)
|
9 | ||||||
7. |
Subscription Rights of Supplemental Eligible Account Holders (Third Priority)
|
10 | ||||||
8. |
Subscription Rights of Other Members (Fourth Priority)
|
10 | ||||||
9. |
Community Offering, Syndicated Community Offering and Other Offerings
|
11 | ||||||
10. |
Limitations on Subscriptions and Purchases of Conversion Stock
|
12 | ||||||
11. |
Timing of Subscription Offering; Manner of Exercising Subscription Rights and Order Forms
|
14 | ||||||
12. |
Payment for Conversion Stock
|
15 | ||||||
13. |
Account Holders in Nonqualified States or Foreign Countries
|
16 | ||||||
14. |
Voting Rights of Shareholders
|
16 | ||||||
15. |
Liquidation Accounts
|
16 | ||||||
16. |
Transfer of Deposit Accounts
|
18 | ||||||
17. |
Requirements Following Conversion for Registration, Market Making and Stock Exchange Listing
|
18 | ||||||
18. |
Directors and Officers of the Bank
|
18 | ||||||
19. |
Requirements for Stock Purchases by Directors and Officers Following the Conversion and Reorganization
|
19 | ||||||
20. |
Restrictions on Transfer of Stock
|
19 | ||||||
21. |
Restrictions on Acquisition of Stock of the Holding Company
|
19 | ||||||
22. |
Tax Rulings or Opinions
|
20 | ||||||
23. |
Stock Compensation Plans
|
20 | ||||||
24. |
Dividend and Repurchase Restrictions on Stock
|
20 | ||||||
25. |
Payment of Fees to Brokers
|
20 | ||||||
26. |
Effective Date
|
20 | ||||||
27. |
Amendment or Termination of the Plan
|
21 | ||||||
28. |
Interpretation of the Plan
|
21 | ||||||
Annex A |
Plan of Merger between the Mutual Holding Company and the Mid-Tier Holding Company
|
A-1 | ||||||
Annex B |
Plan of Merger between the Mid-Tier Holding Company and the Holding Company
|
B-1 |
1. | INTRODUCTION . |
1
2. | DEFINITIONS . |
2
3
4
5
6
3. | GENERAL PROCEDURE FOR CONVERSION AND REORGANIZATION . |
7
4. | TOTAL NUMBER OF SHARES AND PURCHASE PRICE OF CONVERSION STOCK . |
8
5. | SUBSCRIPTION RIGHTS OF ELIGIBLE ACCOUNT HOLDERS (FIRST PRIORITY ). |
6. | SUBSCRIPTION RIGHTS OF EMPLOYEE STOCK OWNERSHIP PLAN (SECOND PRIORITY) . |
9
7. | SUBSCRIPTION RIGHTS OF SUPPLEMENTAL ELIGIBLE ACCOUNT HOLDERS (THIRD PRIORITY) . |
8. | SUBSCRIPTION RIGHTS OF OTHER MEMBERS (FOURTH PRIORITY) . |
10
9. | COMMUNITY OFFERING, SYNDICATED COMMUNITY OFFERING AND OTHER OFFERINGS |
11
10. | LIMITATIONS ON SUBSCRIPTIONS AND PURCHASES OF CONVERSION STOCK |
12
13
11. | TIMING OF SUBSCRIPTION OFFERING; MANNER OF EXERCISING SUBSCRIPTION RIGHTS AND ORDER FORMS . |
14
12. | PAYMENT FOR CONVERSION STOCK . |
15
13. | ACCOUNT HOLDERS IN NONQUALIFIED STATES OR FOREIGN COUNTRIES . |
14. | VOTING RIGHTS OF SHAREHOLDERS . |
15. | LIQUIDATION ACCOUNT . |
16
17
16. | TRANSFER OF DEPOSIT ACCOUNTS . |
17. | REQUIREMENTS FOLLOWING CONVERSION FOR REGISTRATION, MARKET MAKING AND STOCK EXCHANGE LISTING . |
18. | DIRECTORS AND OFFICERS OF THE BANK . |
18
19. | REQUIREMENTS FOR STOCK PURCHASES BY DIRECTORS AND OFFICERS FOLLOWING THE CONVERSION AND REORGANIZATION . |
20. | RESTRICTIONS ON TRANSFER OF STOCK . |
21. | RESTRICTIONS ON ACQUISITION OF STOCK OF THE HOLDING COMPANY . |
19
22. | TAX RULINGS OR OPINIONS . |
23. | STOCK COMPENSATION PLANS . |
24. | DIVIDEND AND REPURCHASE RESTRICTIONS ON STOCK . |
25. | PAYMENT OF FEES TO BROKERS . |
26. | EFFECTIVE DATE . |
20
27. | AMENDMENT OR TERMINATION OF THE PLAN . |
28. | INTERPRETATION OF THE PLAN . |
21
A-1
3. | Cancellation of Mid-Tier Holding Company Common Stock held by the Mutual Holding Company and Member Interests; Establishment of a Liquidation Account. |
Name | Term Expires | |||
James R. Barlow
|
2012 | |||
Walter T. Colquitt III
|
2010 | |||
Mark Malloy Harrison
|
2011 | |||
Daniel R. Herndon
|
2010 | |||
David A. Herndon III
|
2011 | |||
Woodus K. Humphrey
|
2011 | |||
Scott D. Lawrence
|
2010 | |||
Clyde D. Patterson
|
2012 | |||
Amos L. Wedgeworth, Jr.
|
2012 | |||
Timothy W. Wilhite
|
2012 |
A-2
A-3
HOME FEDERAL MUTUAL HOLDING
COMPANY OF LOUISIANA |
||||||
|
||||||
Attest:
|
||||||
|
||||||
|
By: | |||||
|
|
|||||
Corporate Secretary
|
President and Chief Executive Officer | |||||
|
||||||
HOME FEDERAL BANCORP, INC.
OF LOUISIANA (a Federal corporation) |
||||||
|
||||||
Attest:
|
||||||
|
||||||
|
By: | |||||
|
|
|||||
Corporate Secretary
|
President and Chief Executive Officer |
A-4
B-1
B-2
Name | Term Expires | |||
James R. Barlow
|
2012 | |||
Walter T. Colquitt III
|
2010 | |||
Mark Malloy Harrison
|
2011 | |||
Daniel R. Herndon
|
2010 | |||
David A. Herndon III
|
2011 | |||
Woodus K. Humphrey
|
2011 | |||
Scott D. Lawrence
|
2010 | |||
Clyde D. Patterson
|
2012 | |||
Amos L. Wedgeworth, Jr.
|
2012 | |||
Timothy W. Wilhite
|
2012 |
B-3
B-4
HOME FEDERAL
BANCORP, INC.
OF LOUISIANA |
||||||||
(a Federal corporation) | ||||||||
|
||||||||
Attest:
|
||||||||
|
||||||||
|
By: | |||||||
|
|
|||||||
Corporate Secretary
|
President and Chief Executive Officer | |||||||
|
||||||||
HOME FEDERAL
BANCORP, INC.
OF LOUISIANA |
||||||||
(a Louisiana corporation) | ||||||||
|
||||||||
Attest:
|
||||||||
|
||||||||
|
By: | |||||||
|
|
|||||||
Corporate Secretary
|
President and Chief Executive Officer |
B-5
2
3
4
5
6
7
Article 9. Restrictions on Offers and Acquisitions of the Corporations Equity Securities. |
8
Article 10. Amendment of Articles and Bylaws. |
Name | Address | |
James R. Barlow
|
c/o Home Federal Bank
624 Market Street Shreveport, Louisiana 71101 |
9
/s/ DeNell W. Mitchell
|
By: | /s/ James R. Barlow | |||
DeNell W. Mitchell
|
James R. Barlow |
/s/ James R. Barlow | ||||
James R. Barlow | ||||
/s/ Mary L. Jones | ||||
NOTARY PUBLIC | ||||
10
2
3
4
5
6
7
8
NUMBER | SHARES | |
COMMON STOCK | CUSIP | |
(Par Value $.01 Per Share) | See reverse for | |
certain definitions |
|
(SEAL) | |||||||
|
|
|||||||
Corporate Secretary
|
Chairman of the Board, President | |||||||
|
and Chief Executive Officer |
TEN COM
|
- | as tenants in common | ||
TEN ENT
|
- | as tenants by the entireties | ||
JT TEN
|
- | as joint tenants with right of survivorship and not as tenants in common |
| | ||||
|
|
|||
|
||||
|
|
|
Very truly yours, | |||
|
||||
|
ELIAS, MATZ, TIERNAN & HERRICK, LLP | |||
|
||||
|
||||
|
|
2
3
4
Offering | Exchange | Total | ||||||||||
Shares | Shares | Shares | ||||||||||
Shares
|
||||||||||||
Super maximum
|
2,479,688 | 1,407,266 | 3,886,594 | |||||||||
Maximum
|
2,156,250 | 1,223,709 | 3,379,959 | |||||||||
Midpoint
|
1,875,000 | 1,064,095 | 2,939,059 | |||||||||
Minimum
|
1,593,750 | 904,481 | 2,498,231 | |||||||||
|
||||||||||||
Market Value
|
||||||||||||
Super maximum
|
24,796,880 | 14,072,660 | 38,869,540 | |||||||||
Maximum
|
21,562,500 | 12,237,090 | 33,799,590 | |||||||||
Midpoint
|
18,750,000 | 10,640,950 | 29,390,590 | |||||||||
Minimum
|
15,937,500 | 9,044,810 | 24,982,310 |
Respectfully submitted,
Feldman Financial Advisors, Inc.
Trent R. Feldman
President |
||||
Greg E. Izydorczyk
Senior Vice President |
||||
TAB | PAGE | |||||
|
INTRODUCTION | 1 | ||||
|
||||||
I.
|
Chapter One BUSINESS OF HOME FEDERAL BANCORP | |||||
|
General Overview | 4 | ||||
|
Financial Condition | 10 | ||||
|
Income and Expense Trends | 33 | ||||
|
Interest Rate Risk Management | 40 | ||||
|
Asset Quality | 43 | ||||
|
Market Area | 48 | ||||
|
Summary Outlook | 53 | ||||
|
||||||
II.
|
Chapter Two COMPARISONS WITH PUBLICLY HELD THRIFTS | |||||
|
General Overview | 54 | ||||
|
Selection Criteria | 55 | ||||
|
Recent Financial Comparisons | 58 | ||||
|
||||||
III.
|
Chapter Three MARKET VALUE ADJUSTMENTS | |||||
|
General Overview | 70 | ||||
|
Earnings Prospects | 71 | ||||
|
Financial Condition | 73 | ||||
|
Market Area | 74 | ||||
|
Management | 74 | ||||
|
Dividend Policy | 75 | ||||
|
Liquidity of the Issue | 75 | ||||
|
Subscription Interest | 76 | ||||
|
Stock Market Conditions | 78 | ||||
|
Recent Acquisition Activity | 79 | ||||
|
Marketability Discount | 82 | ||||
|
Effect of Government Regulations and Reform | 85 | ||||
|
Adjustments Conclusion | 86 | ||||
|
Valuation Approach | 87 | ||||
|
Valuation Conclusion | 90 |
TAB | PAGE | |||||||
IV. | Appendix EXHIBITS | |||||||
|
||||||||
|
I | Background of Feldman Financial Advisors, Inc. | I-1 | |||||
|
II-1 | Consolidated Balance Sheet | II-1 | |||||
|
II-2 | Consolidated Income Statement | II-2 | |||||
|
II-3 | Loan Portfolio Composition | II-3 | |||||
|
II-4 | Securities Portfolio | II-4 | |||||
|
II-5 | Deposit Portfolio | II-5 | |||||
|
III | Financial and Market Data for All Public Thrifts | III-1 | |||||
|
IV-1 | Pro Forma Assumptions for Full Conversion Valuation | IV-1 | |||||
|
IV-2 | Pro Forma Full Conversion Valuation Range | IV-2 | |||||
|
IV-3 | Pro Forma Full Conversion Analysis at Midpoint | IV-3 | |||||
|
IV-4 | Valuation Ratio Differential | IV-4 |
TAB | PAGE | |||||||
I. | Chapter One BUSINESS OF HOME FEDERAL BANCORP | |||||||
|
||||||||
|
Table 1 | Selected Financial Condition Data | 10 | |||||
|
Table 2 | Loan Portfolio | 15 | |||||
|
Table 3 | Loan Originations, Sales and Repayments | 18 | |||||
|
Table 4 | Securities Portfolio | 25 | |||||
|
Table 5 | Securities Portfolio by Contractual Maturity | 28 | |||||
|
Table 6 | Deposit Portfolio | 29 | |||||
|
Table 7 | Average Deposits and Yields | 30 | |||||
|
Table 8 | Borrowings | 31 | |||||
|
Table 9 | Summary Income Statement Data | 33 | |||||
|
Table 10 | Average Balances and Yields | 34 | |||||
|
Table 11 | Rate/Volume Analysis | 35 | |||||
|
Table 12 | Interest Rate Risk Analysis | 41 | |||||
|
Table 13 | Non-Performing Asset Summary | 44 | |||||
|
Table 14 | Allowance for Loan Losses Summary | 47 | |||||
|
Table 15 | Allocation of Allowance for Loan Losses | 47 | |||||
|
Table 16 | Selected Demographic Data | 50 | |||||
|
Table 17 | Largest Employers in Caddo and Bossier Parishes | 51 | |||||
|
Table 18 | Deposit Market Share -- Parish of Caddo | 52 |
1
2
3
4
5
6
| Continuing to diversify its loan portfolio by emphasizing commercial real estate and commercial business loans, | ||
| Diversify the products and services offered for a larger customer base and an enhanced competitive position; | ||
| Managing expenses while building an infrastructure to support full-service community bank products and services; | ||
| Enhancing core earnings through lower cost transaction and savings accounts combined with higher yielding commercial real estate and business loans and selling fixed-rate residential mortgage loan originations; | ||
| Being competitive in the Companys market area by emphasizing local decision making and an efficient loan approval processes; | ||
| Continuing geographic expansion of the Companys market presence by opening additional de novo branches and possibly, through acquisitions of other financial institutions and banking related businesses (although we have no current plans, understandings or agreements with respect to any specific acquisitions); and | ||
| Maintaining asset quality while continuing to grow and diversify the loan portfolio. |
7
§ | Continue to Grow and Diversify the Loan Portfolio by, among other things, emphasizing the origination of commercial real estate and business loans. Home Federal Bancorps traditional lending activity historically had been concentrated on the origination of single-family residential loans and, to a lesser degree, consumer loans. Beginning in 2009, the Bank hired three senior commercial loan officers to develop a loan portfolio more consistent with that of a community bank. At June 30, 2010, commercial real estate loans amounted to $15.4 million, or 16.4% of the total loan portfolio compared to $8.2 million, or 17.2% at June 30, 2009. The commercial business loans at June 30, 2010 amounted to $9.5 million or 10.1% of the total loan portfolio, compared to $3.9, or 8,2% at June 30, 2009. Commercial real estate, commercial business, construction and development and consumer loans all typically have higher yields and are more interest sensitive than long-term single-family residential mortgage loans. The Bank plans to continue to grow and diversify the loan portfolio, and intends to continue to grow its holdings of commercial real estate and business loans. In addition, the net proceeds to be received from the conversion and offering will increase the Banks loan-to-one borrower limits, which will permit the Bank to originate and retain larger balance, commercial real estate and business loans. | ||
§ | Diversify Products and Services. The Company intends to continue to emphasize increasing the amount of commercial business products to provide a full-service banking relationships to its commercial customers. The Company has also introduced mobile and Internet banking and remote deposit capture, to better serve commercial clients. Additionally, the Company has developed new deposit products focused on expanding the deposit base to new types of customers, as well as products specifically targeted for students. | ||
§ | Enhancing Core Earnings . The Bank expects to improve its interest rate spread by emphasizing commercial real estate and business loans, which generally bear interest rates higher than residential real estate loans, and selling most of the fixed rate residential mortgage loan originations. The weighted average yield on the loan portfolio for the year ended June 30, 2010 was 6.7% and average interest rate spread for the year ended June 30, 2010 was 3.0% as compared to 1.9% for the year ended June 30, 2009. Likewise, the Bank has increased the amount of low cost deposits including non-interest-bearing checking accounts, which resulted in a reduction in Home Federal Bancorps weighted average cost of its deposits, the primary component of its interest expense for fiscal 2010. |
8
§ | Expanding the franchise in the existing market area and contiguous communities . The Bank intends to pursue opportunities to expand its market area by opening additional de novo banking offices and possibly, through acquisitions of other financial institutions and banking related businesses (although the Bank has no current plans, understandings or agreements with respect to any specific acquisitions). The Bank expects to focus on contiguous areas to the current locations in Caddo and Bossier Parishes. The Companys first branch office in North Bossier City is expected to open in October 2010 and may develop a site in South Bossier in the future. | ||
§ | Maintain Asset Quality. At June 30, 2010, non-performing assets totaled $360,000 or 0.19% of total assets. The Bank had no real estate owned or troubled debt restructurings at June 30, 2010. The Bank intends to continue to stress maintaining high asset quality after the conversion and offering even as it continues to grow the institution and diversity the loan portfolio. Home Federal Bancorp does not nor has it in the past, originated or purchased sub-prime mortgage loans. | ||
§ | Cross-Selling Products and Services and Emphasizing Local Decision. The Company has promoted cross-selling products and services in its branch offices, emphasized local decision making, and streamlined loan approval process. The Company presently has two full-time loan underwriters at Home Federal Bank. |
9
At June 30, | ||||||||||||||||||||
(Dollars in Thousands, except per share data) | 2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||
Selected Financial and Other Data:
|
||||||||||||||||||||
Assets
|
$ | 185,145 | $ | 154,766 | $ | 137,715 | $ | 118,875 | $ | 114,000 | ||||||||||
Cash and cash equivalents
|
8,837 | 10,007 | 7,363 | 3,972 | 4,930 | |||||||||||||||
Securities available for sale
|
63,688 | 92,647 | 96,324 | 83,752 | 83,694 | |||||||||||||||
Securities held to maturity
|
2,138 | 2,184 | 1,688 | 1,408 | 1,425 | |||||||||||||||
Loans held-for-sale
|
13,403 | 1,277 | 852 | | | |||||||||||||||
Loans receivable, net
|
93,056 | 46,948 | 28,263 | 26,689 | 20,866 | |||||||||||||||
Deposits
|
117,722 | 86,146 | 78,359 | 77,710 | 71,279 | |||||||||||||||
FHLB advances
|
31,507 | 35,997 | 26,876 | 12,368 | 13,417 | |||||||||||||||
Total Stockholders Equity
|
33,365 | 31,310 | 27,874 | 27,812 | 28,539 |
As of or For the Year Ended June 30, | ||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
Selected Operating Data:
|
||||||||||||||||||||
Total interest income
|
$ | 9,169 | $ | 7,596 | $ | 7,004 | $ | 6,590 | $ | 5,664 | ||||||||||
Total interest expense
|
3,458 | 3,838 | 3,968 | 3,448 | 2,433 | |||||||||||||||
Net interest income
|
5,711 | 3,758 | 3,036 | 3,142 | 3,231 | |||||||||||||||
Provision for loan losses
|
36 | 240 | 0 | 1 | 0 | |||||||||||||||
Net interest income after provision for loan losses
|
5,675 | 3,518 | 3,036 | 3,141 | 3,231 | |||||||||||||||
Total non-interest income
|
864 | 363 | 198 | 240 | 145 | |||||||||||||||
Total non-interest expense
|
5,196 | 3,113 | 3,359 | 2,417 | 2,415 | |||||||||||||||
Income (loss) before income tax expense (benefit)
|
1,343 | 768 | (125 | ) | 964 | 961 | ||||||||||||||
Income tax expense (benefit)
|
673 | 253 | (43 | ) | 327 | 327 | ||||||||||||||
Net income (loss)
|
$ | 670 | $ | 515 | $ | (82 | ) | $ | 637 | $ | 634 | |||||||||
Earnings (loss) per share of common stock:
|
||||||||||||||||||||
Basic
|
$ | 0.21 | $ | 0.16 | $ | (0.03 | ) | $ | 0.19 | $ | 0.19 | |||||||||
Diluted
|
$ | 0.21 | $ | 0.16 | $ | (0.03 | ) | $ | 0.19 | $ | 0.19 | |||||||||
|
||||||||||||||||||||
Selected Operating Ratios:
|
||||||||||||||||||||
Average yield on interest-earning assets
|
5.59 | % | 5.21 | % | 5.39 | % | 5.69 | % | 5.35 | % | ||||||||||
Average yield on interest-bearing liabilities
|
2.56 | 3.32 | 4 | 3.84 | 2.98 | |||||||||||||||
Average interest rate spread
|
3.03 | 1.89 | 1.39 | 1.85 | 2.37 | |||||||||||||||
Net interest margin
|
3.48 | 2.58 | 2.33 | 2.71 | 3.05 | |||||||||||||||
Average interest-earning assets to interest-bearing liabilities
|
121.43 | 126.37 | 131.06 | 128.93 | 129.49 | |||||||||||||||
Net interest income after provision for loan losses to non-interest expense
|
109.22 | 113.01 | 90.38 | 129.95 | 133.82 | |||||||||||||||
Total non-interest expense to average assets
|
3.08 | 2.09 | 2.52 | 2.00 | 2.14 | |||||||||||||||
Efficiency ratio
|
79.46 | 80.21 | 103.87 | 71.49 | 71.53 | |||||||||||||||
Return on average assets
|
0.40 | 0.35 | (0.06 | ) | 0.53 | 0.56 | ||||||||||||||
Return on average equity
|
2.09 | 1.70 | (0.25 | ) | 2.13 | 2.10 | ||||||||||||||
Average equity to average assets
|
18.98 | 20.35 | 24.83 | 24.82 | 26.81 | |||||||||||||||
Dividend payout ratio
|
43.78 | 57.86 | | 52.90 | 49.37 | |||||||||||||||
|
||||||||||||||||||||
Asset Quality Ratios:
|
||||||||||||||||||||
Non-performing loans as a percent of total loans receivable
|
0.38 | % | 0.72 | % | | % | 0.46 | % | | % | ||||||||||
Non-performing assets as a percent of total assets
|
0.19 | 0.23 | 0.04 | 0.10 | | |||||||||||||||
Allowance for loan losses as a percent of total loans receivable
|
0.52 | 0.98 | 0.82 | 0.92 | 1.11 | |||||||||||||||
Net charge-offs to average loans receivable
|
0.02 | 0.03 | | | | |||||||||||||||
Allowance for loan losses as a percent of non-performing loans
|
135.83 | 133.52 | | 202.59 | | |||||||||||||||
|
||||||||||||||||||||
Bank Capital Ratios:
|
||||||||||||||||||||
Tangible capital ratio
|
16.47 | % | 18.93 | % | 20.21 | % | 22.79 | % | 23.48 | % | ||||||||||
Core capital ratio
|
16.47 | 18.93 | 20.21 | 22.79 | 23.48 | |||||||||||||||
Total capital ratio
|
33.67 | 54.77 | 73.08 | 80.63 | 87.78 | |||||||||||||||
|
||||||||||||||||||||
Other Data:
|
||||||||||||||||||||
Full service offices
|
4 | 4 | 3 | 3 | 3 |
10
11
12
13
14
June 30, | ||||||||||||||||
2010 | 2009 | |||||||||||||||
Amount | % | Amount | % | |||||||||||||
Real estate loans:
|
||||||||||||||||
One- to four-family residential
|
$ | 36,257 | 38.65 | $ | 22,106 | 46.50 | ||||||||||
Commercial real estate secured:
|
||||||||||||||||
Owner occupied
|
14,550 | 15.51 | 8,193 | 17.23 | ||||||||||||
Non-owner occupied
|
872 | 0.93 | 0 | 0.00 | ||||||||||||
|
||||||||||||||||
Total commercial real estate secured
|
15,422 | 16.44 | 8,193 | 17.23 | ||||||||||||
Multi-family residential
|
9,079 | 9.68 | 4,884 | 10.27 | ||||||||||||
Commercial business
|
9,454 | 10.08 | 3,904 | 8.21 | ||||||||||||
Land
|
8,442 | 9.00 | 2,348 | 4.94 | ||||||||||||
Construction
|
7,793 | 8.31 | 338 | 0.71 | ||||||||||||
Home equity loans and
second mortgage loans
|
2,963 | 3.16 | 4,914 | 10.34 | ||||||||||||
Equity lines of credit
|
4,069 | 4.34 | 451 | 0.95 | ||||||||||||
|
||||||||||||||||
Total real estate loans
|
93,479 | 99.65 | 47,138 | 99.16 | ||||||||||||
|
||||||||||||||||
Non-real estate loans
|
||||||||||||||||
Savings accounts
|
285 | 0.30 | 359 | 0.76 | ||||||||||||
Automobile
|
48 | 0.05 | 40 | 0.08 | ||||||||||||
|
||||||||||||||||
Total non-real estate loans
|
333 | 0.35 | 399 | 0.84 | ||||||||||||
|
||||||||||||||||
Total loans
|
93,812 | 100.00 | 47,537 | 100.00 | ||||||||||||
|
||||||||||||||||
Less:
|
||||||||||||||||
Allowance for loan losses
|
(489 | ) | (466 | ) | ||||||||||||
Deferred loan fees
|
(267 | ) | (123 | ) | ||||||||||||
|
||||||||||||||||
Net Loans (1)
|
$ | 93,056 | $ | 46,948 | ||||||||||||
|
(1) | Does not include loans held for sale amounting to $13.4 million and $1.3 million at June 30, 2010 and June 30, 2009, respectively. |
15
16
17
Year Ended June 30, | ||||||||
2010 | 2009 | |||||||
Loan originations:
|
||||||||
One- to four-family residential
|
$ | 113,753 | $ | 32,160 | ||||
Commercial real estate secured (owner
occupied and non-owner occupied)
|
8,645 | 8,217 | ||||||
Multi-family residential
|
7,780 | | ||||||
Commercial business
|
12,877 | 2,770 | ||||||
Land
|
7,651 | 3,502 | ||||||
Construction
|
11,569 | 339 | ||||||
Consumer
|
6,488 | 3,702 | ||||||
|
||||||||
Total loan originations
|
168,673 | 50,690 | ||||||
Loans purchased
|
| | ||||||
|
||||||||
Total loan originations and
loans purchased
|
168,673 | 50,690 | ||||||
|
||||||||
|
||||||||
Loans sold
|
(71,554 | ) | (16,157 | ) | ||||
Loan principal payments
|
(50,844 | ) | (15,609 | ) | ||||
|
||||||||
Total loans sold and
principal repayments
|
(122,398 | ) | (31,766 | ) | ||||
(Increase) decrease due to other items, net (1)
|
(167 | ) | (239 | ) | ||||
|
||||||||
Net increase (decrease) in loan portfolio
|
$ | 46,108 | $ | 18,685 | ||||
|
(1) | Other items consist of deferred loan fees, the allowance for loan losses and loans held for sale at year end. |
18
19
20
21
22
23
24
June 30, | ||||||||||||||||
2010 | 2009 | |||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||
Cost | Value | Cost | Value | |||||||||||||
(in thousands) | ||||||||||||||||
Securities held-to-maturity
|
||||||||||||||||
FHLB stock
|
$ | 1,840 | $ | 1,840 | $ | 1,806 | $ | 1,806 | ||||||||
Mortgage-backed securities
|
298 | 323 | 378 | 389 | ||||||||||||
|
||||||||||||||||
Total securities held-to-maturity
|
2,138 | 2,163 | 2,184 | 2,195 | ||||||||||||
|
||||||||||||||||
|
||||||||||||||||
Securities available-for-sale
|
||||||||||||||||
Debt securities
|
||||||||||||||||
Corporate securities
|
1,538 | 1,559 | 2,415 | 1,727 | ||||||||||||
Mortgage-backed securities
|
58,974 | 62,129 | 89,567 | 90,920 | ||||||||||||
|
||||||||||||||||
Total securities available-for-sale
|
60,512 | 63,688 | 91,982 | 92,647 | ||||||||||||
|
||||||||||||||||
Total investment securities
|
$ | 62,650 | $ | 65,851 | $ | 94,166 | $ | 94,842 | ||||||||
|
25
26
27
Amounts at June 30, 2010 Which Mature in | ||||||||||||||||||||||||||||||||
Over One | Over Five | |||||||||||||||||||||||||||||||
One | Weighted | Year | Weighted | Year | Weighted | Over | Weighted | |||||||||||||||||||||||||
Year | Average | Through | Average | Through | Average | Ten | Average | |||||||||||||||||||||||||
or Less | Yield | Five Years | Yield | Ten Years | Yield | Years | Yield | |||||||||||||||||||||||||
Bonds and other debt securities:
|
||||||||||||||||||||||||||||||||
Mortgage-backed securities
|
$ | 8 | 6.08 | % | $ | 5 | 6.41 | % | $ | 866 | 3.52 | % | $ | 61,573 | 4.95 | % | ||||||||||||||||
Equity securities (1):
|
||||||||||||||||||||||||||||||||
ARM Fund
|
0 | 0 | 0 | 0 | 0 | 0 | 1,559 | 3.47 | ||||||||||||||||||||||||
FHLB stock
|
0 | 0 | 0 | 0 | 0 | 0 | 1,840 | 0.37 | ||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Totals
|
$ | 8 | 6.08 | % | $ | 5 | 6.41 | % | $ | 866 | 3.52 | % | $ | 64,972 | 4.78 | % | ||||||||||||||||
|
(1) | None of the listes securities has a stated maturity. |
28
June 30, | ||||||||||||||||
2010 | 2009 | |||||||||||||||
Amount | % | Amount | % | |||||||||||||
Certificate accounts:
|
||||||||||||||||
0.00% - 0.99%
|
$ | 12 | 0.01 | $ | 134 | 0.16 | ||||||||||
1.00% - 1.99%
|
30,309 | 25.75 | 11,970 | 13.90 | ||||||||||||
2.00% - 2.99%
|
16,734 | 14.21 | 13,030 | 15.13 | ||||||||||||
3.00% - 3.99%
|
17,497 | 14.86 | 21,405 | 24.85 | ||||||||||||
4.00% - 4.99%
|
7,865 | 6.68 | 12,990 | 15.08 | ||||||||||||
5.00% - 5.99%
|
1,473 | 1.25 | 3,272 | 3.80 | ||||||||||||
|
||||||||||||||||
Total certificate accounts
|
73,890 | 62.77 | 62,801 | 72.90 | ||||||||||||
|
||||||||||||||||
|
||||||||||||||||
Transaction accounts:
|
||||||||||||||||
Savings
|
5,266 | 4.47 | 6,056 | 7.03 | ||||||||||||
NOW
|
18,130 | 15.40 | 8,537 | 9.91 | ||||||||||||
Money market
|
20,436 | 17.36 | 8,752 | 10.16 | ||||||||||||
|
||||||||||||||||
Total transaction accounts
|
43,832 | 37.23 | 23,345 | 27.10 | ||||||||||||
|
||||||||||||||||
|
||||||||||||||||
Total deposits
|
$ | 117,722 | 100.00 | $ | 86,146 | 100.00 | ||||||||||
|
29
Year Ended June 30, | ||||||||||||||||||||||||
2010 | 2009 | |||||||||||||||||||||||
Average | Interest | Average | Average | Interest | Average | |||||||||||||||||||
Balance | Expense | Rate Paid | Balance | Expense | Rate Paid | |||||||||||||||||||
Savings
|
$ | 5,588 | $ | 23 | 0.41 | % | $ | 5,653 | $ | 26 | 0.46 | % | ||||||||||||
NOW
|
11,523 | 22 | 0.19 | 7,896 | 21 | 0.27 | ||||||||||||||||||
Money Market
|
14,377 | 183 | 1.27 | 4,268 | 38 | 0.89 | ||||||||||||||||||
Certificates of deposit
|
67,981 | 2,010 | 2.96 | 61,780 | 2,378 | 3.85 | ||||||||||||||||||
|
||||||||||||||||||||||||
Total deposits
|
$ | 99,469 | $ | 2,238 | 2.25 | % | $ | 79,597 | $ | 2,463 | 3.09 | % | ||||||||||||
|
30
At or for the Year | ||||||||
Ended June 30, | ||||||||
2010 | 2009 | |||||||
FHLB Advances:
|
||||||||
Average balance outstanding
|
$ | 35,529 | $ | 35,853 | ||||
Maximum amount outstanding at any
month-end during the period
|
42,542 | 41,134 | ||||||
Balance outstanding at end of period
|
31,507 | 35,997 | ||||||
Average interest rate during the period
|
3.43 | % | 3.84 | % | ||||
Weighted average interest rate at the end of the period
|
3.47 | % | 3.81 | % |
31
32
As of or For the Year Ended June 30, | ||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
Total interest income
|
$ | 9,169 | $ | 7,596 | $ | 7,004 | $ | 6,590 | $ | 5,664 | ||||||||||
Total interest expense
|
3,458 | 3,838 | 3,968 | 3,448 | 2,433 | |||||||||||||||
|
||||||||||||||||||||
Net interest income
|
5,711 | 3,758 | 3,036 | 3,142 | 3,231 | |||||||||||||||
Provision for loan losses
|
36 | 240 | 0 | 1 | 0 | |||||||||||||||
|
||||||||||||||||||||
Net interest income after provision for loan losses
|
5,675 | 3,518 | 3,036 | 3,141 | 3,231 | |||||||||||||||
Total non-interest income
|
864 | 363 | 198 | 240 | 145 | |||||||||||||||
Total non-interest expense
|
5,196 | 3,113 | 3,359 | 2,417 | 2,415 | |||||||||||||||
|
||||||||||||||||||||
Income before income taxes
|
1,343 | 768 | -125 | 964 | 961 | |||||||||||||||
Income taxes
|
673 | 253 | -43 | 327 | 327 | |||||||||||||||
|
||||||||||||||||||||
Net income
|
$ | 670 | $ | 515 | -$ | 82 | $ | 637 | $ | 634 | ||||||||||
|
33
Year Ended June 30, | ||||||||||||||||||||||||||||
2010 | 2009 | |||||||||||||||||||||||||||
Yield/Rate | Average | Average | Average | Average | ||||||||||||||||||||||||
at June 30, 2010 | Balance | Interest | Yield/Rate | Balance | Interest | Yield/Rate | ||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||||||
Investment securities
|
4.78 | % | $ | 78,880 | $ | 3,942 | 5.00 | % | $ | 107,683 | $ | 5,333 | 4.95 | % | ||||||||||||||
Loans receivable
|
5.70 | 77,879 | 5,218 | 6.70 | 32,630 | 2,238 | 6.86 | |||||||||||||||||||||
Interest-earning deposits
|
0.07 | 7,163 | 9 | 0.13 | 5,578 | 25 | 0.45 | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Total interest-earning assets
|
5.20 | % | 163,922 | 9,169 | 5.59 | % | 145,891 | 7,596 | 5.21 | % | ||||||||||||||||||
|
||||||||||||||||||||||||||||
Non-interest-earning assets
|
4,787 | 2,730 | ||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Total assets
|
$ | 168,709 | $ | 148,621 | ||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||||||
Savings accounts
|
0.42 | % | $ | 5,588 | 23 | 0.41 | % | $ | 5,653 | 26 | 0.46 | % | ||||||||||||||||
NOW accounts
|
0.12 | 11,523 | 22 | 0.19 | 7,896 | 21 | 0.27 | |||||||||||||||||||||
Money market accouts
|
1.19 | 14,377 | 183 | 1.27 | 4,268 | 38 | 0.89 | |||||||||||||||||||||
Certificate accounts
|
2.66 | 67,981 | 2,010 | 2.96 | 61,780 | 2,378 | 3.85 | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Total deposits
|
1.90 | $ | 99,469 | 2,238 | 2.25 | $ | 79,597 | 2,463 | 3.09 | |||||||||||||||||||
FHLB advances
|
3.47 | 35,529 | 1,219 | 3.43 | 35,853 | 1,375 | 3.84 | |||||||||||||||||||||
|
||||||||||||||||||||||||||||
Total interest-bearing liabilities
|
2.23 | % | 134,998 | $ | 3,457 | 2.56 | % | 115,450 | $ | 3,838 | 3.32 | % | ||||||||||||||||
|
||||||||||||||||||||||||||||
Non-interest-earning liabilities
|
1,696 | 2,927 | ||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Total liabilities
|
136,694 | 118,377 | ||||||||||||||||||||||||||
Total stockholders equity
|
32,015 | 30,244 | ||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Total liabilities and equity
|
$ | 168,709 | $ | 148,621 | ||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Net interest-earning assets
|
$ | 28,924 | $ | 30,441 | ||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Net interest income; average
interest rate spread
|
$ | 5,712 | 3.03 | % | $ | 3,758 | 1.89 | % | ||||||||||||||||||||
|
||||||||||||||||||||||||||||
Net interest margin
|
3.48 | % | 2.58 | % | ||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Average interest-earning assets to
average interest-bearing liabilities
|
121.43 | % | 126.37 | % | ||||||||||||||||||||||||
|
34
Year Ended June 30, | ||||||||||||||||||||||||
2010 vs 2009 | 2009 vs 2008 | |||||||||||||||||||||||
Increase (Decrease) | Total | Increase (Decrease) | Total | |||||||||||||||||||||
Due to | Increase | Due to | Increase | |||||||||||||||||||||
Rate | Volume | (Decrease) | Rate | Volume | (Decrease) | |||||||||||||||||||
Interest income:
|
||||||||||||||||||||||||
Investment securities
|
$ | 39 | $ | (1,427 | ) | $ | (1,388 | ) | $ | (98 | ) | $ | 651 | $ | 553 | |||||||||
Loans receivable, net
|
(126 | ) | 3,103 | 2,977 | (118 | ) | 284 | 166 | ||||||||||||||||
Interest-earning deposits
|
(23 | ) | 7 | (16 | ) | (104 | ) | (23 | ) | (127 | ) | |||||||||||||
|
||||||||||||||||||||||||
Total interest-earning assets
|
(110 | ) | 1,683 | 1,573 | (320 | ) | 912 | 592 | ||||||||||||||||
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Interest expense:
|
||||||||||||||||||||||||
Savings accouts
|
(3 | ) | (1 | ) | (4 | ) | (1 | ) | 5 | 4 | ||||||||||||||
NOW accounts
|
(9 | ) | 10 | 1 | 3 | 2 | 5 | |||||||||||||||||
Money market accounts
|
55 | 90 | 145 | 21 | 5 | 26 | ||||||||||||||||||
Certificate accounts
|
(605 | ) | 239 | (366 | ) | (508 | ) | (99 | ) | (607 | ) | |||||||||||||
|
||||||||||||||||||||||||
Total deposits
|
(562 | ) | 338 | (224 | ) | (485 | ) | (87 | ) | (572 | ) | |||||||||||||
FHLB advances
|
(145 | ) | (12 | ) | (157 | ) | (249 | ) | 691 | 442 | ||||||||||||||
|
||||||||||||||||||||||||
Total interest-bearing liabilities
|
(707 | ) | 326 | (381 | ) | (734 | ) | 604 | (130 | ) | ||||||||||||||
(decrease) Increase in net interest income
|
$ | 597 | $ | 1,357 | $ | 1,954 | $ | 414 | $ | 308 | $ | 722 | ||||||||||||
|
35
36
37
38
39
40
NPV as % of | ||||||||||||||||||||
Change in Rates | Net Portfolio Value | PV of Assets | ||||||||||||||||||
(bp) | Amount | $ Change | % Change | NPV Ratio | Change | |||||||||||||||
(Dollars in Thousands) | ||||||||||||||||||||
300
|
$ | 30,323 | $ | (7,943 | ) | (20.76 | )% | 16.84 | % | (2.82 | )% | |||||||||
200
|
33,578 | (4,688 | ) | (12.25 | ) | 18.11 | (1.55 | ) | ||||||||||||
100
|
36,349 | (1,917 | ) | (5.01 | ) | 19.09 | (0.57 | ) | ||||||||||||
Static
|
38,266 | | | 19.66 | | |||||||||||||||
(50)
|
38,636 | 370 | 0.97 | 19.69 | 0.03 | |||||||||||||||
(100)
|
38,661 | 396 | 1.03 | 19.60 | (0.05 | ) |
41
42
43
June 30, | ||||||||
2010 | 2009 | |||||||
Non-accruing loans:
|
||||||||
One- to four-family residential
|
$ | 15 | $ | 349 | ||||
Commercial real estate secured
|
| | ||||||
Multi-family residential
|
| | ||||||
Commercial business
|
| | ||||||
Land
|
| | ||||||
Construction
|
345 | | ||||||
Consumer
|
| | ||||||
|
||||||||
Total non-accruing loans
|
$ | 360 | $ | 349 | ||||
|
||||||||
Accruing loans more than 90 days of more past due:
|
| | ||||||
Total non-performing loans
|
$ | 360 | $ | 349 | ||||
|
||||||||
Real estate owned, net
|
| | ||||||
|
||||||||
Total non-performing assets
|
$ | 360 | $ | 349 | ||||
|
||||||||
Total non-performing loans as a percent of loans, net
|
0.39 | % | 0.74 | % | ||||
Total non-performing assets as a percent of total assets
|
0.19 | % | 0.23 | % |
44
45
46
June 30, | ||||||||
2010 | 2009 | |||||||
Total loans outstanding at end of period
|
$ | 93,812 | $ | 47,537 | ||||
Average loans outstanding
|
77,879 | 32,630 | ||||||
|
||||||||
Allowance for loan losses, beginning of period
|
466 | 235 | ||||||
Provision for losses
|
36 | 240 | ||||||
Charge-offs
|
(13 | ) | (9 | ) | ||||
|
||||||||
Allowance for loan losses, end of period
|
489 | 466 | ||||||
|
||||||||
|
||||||||
Allowance for loan losses as a percent of non-performing loans
|
135.83 | % | 133.52 | % | ||||
Allowance for loan losses as a percent of loans outstanding
|
0.52 | % | 0.98 | % |
June 30, | ||||||||||||||||
2010 | 2009 | |||||||||||||||
Loan
|
Loan
|
|||||||||||||||
Category
|
Category
|
|||||||||||||||
Amount of
|
as a % of
|
Amount of
|
as a % of
|
|||||||||||||
Allowance | Total Loans | Allowance | Total Loans | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
One- to four-family residential
|
$ | 30 | 38.65 | % | $ | 29 | 46.50 | % | ||||||||
Commercial real estate
|
95 | 16.44 | 91 | 17.24 | ||||||||||||
Multi-family residential
|
70 | 9.68 | 67 | 10.27 | ||||||||||||
Commercial business
|
140 | 19.08 | 133 | 13.15 | ||||||||||||
Land
|
75 | 71 | ||||||||||||||
Construction
|
74 | 8.31 | 71 | 0.71 | ||||||||||||
Home equity loans and lines of credit and other consumer
|
5 | 7.84 | 4 | 12.13 | ||||||||||||
Total
|
$ | 489 | 100.00 | % | $ | 466 | 100.00 | % | ||||||||
47
48
49
United | State of | Caddo | Bossier | City of | ||||||||||||||||
States | Louisiana | Parish | Parish | Shreveport | ||||||||||||||||
Total Population
|
||||||||||||||||||||
2010 - Current
|
311,212,863 | 4,507,335 | 254,855 | 113,582 | 196,828 | |||||||||||||||
% Change 2000-10
|
10.6 | % | 0.9 | % | 1.1 | % | 15.5 | % | -1.7 | % | ||||||||||
% Change 2010-15
|
3.9 | % | 3.7 | % | -0.1 | % | 5.7 | % | -0.9 | % | ||||||||||
|
||||||||||||||||||||
Age Distribution, 2010
|
||||||||||||||||||||
0 - 14 Age Group
|
20.1 | % | 21.1 | % | 20.5 | % | 22.1 | % | 20.8 | % | ||||||||||
15 -34 Age Group
|
27.2 | % | 27.9 | % | 27.3 | % | 27.4 | % | 28.1 | % | ||||||||||
35 -54 Age Group
|
28.0 | % | 27.2 | % | 26.2 | % | 28.3 | % | 25.7 | % | ||||||||||
55+ Age Group
|
24.7 | % | 23.8 | % | 26.0 | % | 22.3 | % | 25.5 | % | ||||||||||
Median Age (years)
|
37.0 | 35.8 | 36.8 | 35.4 | 35.9 | |||||||||||||||
|
||||||||||||||||||||
Total Households
|
||||||||||||||||||||
2010 - Current
|
116,761,140 | 1,697,816 | 100,611 | 43,657 | 78,587 | |||||||||||||||
% Change 2000-10
|
10.7 | % | 2.5 | % | 2.7 | % | 19.2 | % | -0.1 | % | ||||||||||
% Change 2010-15
|
3.9 | % | 4.2 | % | 0.3 | % | 6.6 | % | -0.5 | % | ||||||||||
|
||||||||||||||||||||
Median Household Net Worth
|
$ | 93,084 | $ | 43,512 | $ | 38,114 | $ | 63,037 | $ | 28,859 | ||||||||||
|
||||||||||||||||||||
Average Household Income
|
||||||||||||||||||||
2010 - Current
|
$ | 70,173 | $ | 49,844 | $ | 49,550 | $ | 54,583 | $ | 47,589 | ||||||||||
% Change 2000-10
|
23.9 | % | 11.2 | % | 9.7 | % | 14.2 | % | 7.0 | % | ||||||||||
% Change 2010-15
|
13.1 | % | 2.0 | % | 1.4 | % | 2.1 | % | 1.4 | % | ||||||||||
|
||||||||||||||||||||
Median Household Income
|
||||||||||||||||||||
2010 - Current
|
$ | 54,442 | $ | 37,623 | $ | 35,649 | $ | 44,932 | $ | 34,157 | ||||||||||
% Change 2000-10
|
29.1 | % | 14.7 | % | 12.9 | % | 14.6 | % | 11.8 | % | ||||||||||
% Change 2010-15
|
12.4 | % | 8.2 | % | 10.1 | % | 10.0 | % | 9.5 | % | ||||||||||
|
||||||||||||||||||||
Per Capita Income
|
||||||||||||||||||||
2010 - Current
|
$ | 26,739 | $ | 19,150 | $ | 19,902 | $ | 21,234 | $ | 19,393 | ||||||||||
% Change 2000-10
|
23.9 | % | 13.2 | % | 11.6 | % | 17.2 | % | 9.2 | % | ||||||||||
% Change 2010-15
|
13.1 | % | 2.6 | % | 2.0 | % | 3.1 | % | 2.0 | % | ||||||||||
|
||||||||||||||||||||
Unemployemnt Rate
|
||||||||||||||||||||
June 2010
|
9.5 | % | 8.3 | % | 8.4 | % | 6.3 | % | NA | |||||||||||
December 2009
|
10.0 | % | 7.2 | % | 7.5 | % | 6.0 | % | NA | |||||||||||
December 2008
|
7.2 | % | 5.6 | % | 6.8 | % | 5.4 | % | NA |
50
Type of | Number of | |||||||||
Rank | Employer | Business | Employees | Parish | ||||||
1 |
Barksdale Air Force Base
|
Military | 9,018 | Bossier | ||||||
2 |
Caddo Parish School Board
|
School system | 6,587 | Caddo | ||||||
3 |
LSU Health Sciences Center
|
Health Care | 6,094 | Caddo | ||||||
4 |
Willis Knighton Health Systems
|
Health Care | 5,490 | Caddo | ||||||
5 |
Bossier Parish School Board
|
School system | 2,807 | Bossier | ||||||
6 |
City of Shreveport
|
Government | 2,691 | Caddo | ||||||
7 |
Christus Schumpert Health System
|
Health Care | 2,018 | Caddo | ||||||
8 |
Harrahs Horshoe Casino &
Hotel/Louisiana Downs
|
Gaming | 2,000 | Bossier | ||||||
9 |
U.S. Support Company
|
Call Center | 1,618 | Caddo | ||||||
10 |
Overton Brooks VA Medical Center
|
Health Care | 1,533 | Caddo | ||||||
11 |
Eldorado Resort Casino
|
Gaming | 1,400 | Caddo | ||||||
12 |
Sams Town Hotel and Casino
|
Gaming | 1,265 | Caddo | ||||||
13 |
Libbey Glass, Inc.
|
Glassware | 968 | Caddo | ||||||
14 |
Diamond Jacks Casino
|
Gaming | 963 | Bossier | ||||||
15 |
Gorman Group/Tango Transport, Inc.
|
Transportation | 925 | Caddo |
51
2010 | 2009 | |||||||||||||||||||||||||
Rank | Number of | Total | Market | Total | Market | |||||||||||||||||||||
2010 | 2009 | Institution (ST) | Type | Branches | Deposits | Share | Deposits | Share | ||||||||||||||||||
1 | 1 |
Regions Financial Corp. (AL)
|
Bank | 10 | 1,103,949 | 27.07 | 1,054,888 | 29.48 | ||||||||||||||||||
2 | 2 |
Capital One Financial Corp. (VA)
|
Bank | 15 | 1,092,055 | 26.78 | 932,622 | 26.06 | ||||||||||||||||||
3 | 3 |
JPMorgan Chase & Co. (NY)
|
Bank | 12 | 550,003 | 13.49 | 581,803 | 16.26 | ||||||||||||||||||
4 | 4 |
BancorpSouth Inc. (MS)
|
Bank | 6 | 479,929 | 11.77 | 309,068 | 8.64 | ||||||||||||||||||
5 | 5 |
IBERIABANK Corp. (LA)
|
Bank | 2 | 130,931 | 3.21 | 108,403 | 3.03 | ||||||||||||||||||
6 | 6 |
C B & T Bancshares Inc. (LA)
|
Bank HC | 4 | 108,464 | 2.66 | 90,903 | 2.54 | ||||||||||||||||||
7 | 9 |
Red River Bancshares Inc. (LA)
|
Bank HC | 3 | 97,006 | 2.38 | 59,813 | 1.67 | ||||||||||||||||||
8 | 14 |
Business First Bancshares Inc. (LA)
|
Bank HC | 1 | 89,746 | 2.20 | 41,939 | 1.17 | ||||||||||||||||||
9 | 8 |
Home Fedl Bncp Inc. LA (MHC) (LA)
|
Thrift | 4 | 87,542 | 2.15 | 83,930 | 2.35 | ||||||||||||||||||
10 | 7 |
Community Trust Finl Corp. (LA)
|
Bank HC | 3 | 76,661 | 1.88 | 84,115 | 2.35 | ||||||||||||||||||
11 | 12 |
Ouachita Bancshares Corp. (LA)
|
Bank HC | 2 | 68,806 | 1.69 | 48,956 | 1.37 | ||||||||||||||||||
12 | 10 |
Mansfield Bancshares Inc. (LA)
|
Bank HC | 4 | 54,792 | 1.34 | 56,556 | 1.58 | ||||||||||||||||||
13 | 11 |
Citizens National Bancshares (LA)
|
Bank | 3 | 54,566 | 1.34 | 49,991 | 1.40 | ||||||||||||||||||
14 | 13 |
First Guaranty Bancshares Inc. (LA)
|
Bank | 2 | 46,057 | 1.13 | 46,611 | 1.30 | ||||||||||||||||||
15 | 15 |
PSB Financial Corporation (LA)
|
Bank HC | 1 | 24,488 | 0.60 | 21,518 | 0.60 | ||||||||||||||||||
16 | 16 |
Tri-State Bancshares Inc. (LA)
|
Bank HC | 1 | 6,460 | 0.16 | 5,424 | 0.15 | ||||||||||||||||||
17 | 18 |
CB&T Holding Corp. (LA)
|
Bank HC | 1 | 4,136 | 0.10 | 0 | 0.00 | ||||||||||||||||||
18 | 17 |
Progressive NB DeSoto Parish (LA)
|
Comml Ba | 1 | 2,116 | 0.05 | 1,541 | 0.04 | ||||||||||||||||||
19 | NA |
Progressive Bancorp Inc. (LA)
|
Bank HC | 1 | 0 | 0.00 | NA | NA | ||||||||||||||||||
|
||||||||||||||||||||||||||
Total For Institutions In Market
|
72 | 4,077,707 | 100.00 | 3,578,081 | 100.00 | |||||||||||||||||||||
|
52
53
II. | COMPARISONS WITH PUBLICLY HELD THRIFTS |
54
| Operating characteristics An institutions operating characteristics are the most important factors because they affect investors expected rates of return on a companys stock under various business/economic scenarios, and they influence the markets general perception of the quality and attractiveness of a given company. Operating characteristics, which may vary in importance during the business cycle, include financial variables such as profitability, balance sheet growth, capitalization, asset quality, and other factors such as lines of business and management strategies. | ||
| Degree of marketability and liquidity Marketability of a stock reflects the relative ease and promptness with which a security may be sold when desired, at a representative current price, without material concession in price merely because of the necessity of sale. Marketability also connotes the existence of buying interest as well as selling interest and is usually indicated by trading volumes and the spread between the bid and asked price for a security. Liquidity of the stock issue refers to the organized market exchange process whereby the security can be converted into cash. We attempted to limit our selection to companies that have access to a regular trading market or price quotations. We eliminated from the comparative group companies with market prices that were materially influenced by publicly announced or widely rumored acquisitions. However, the expectation of continued industry consolidation is currently embedded in thrift equity valuations. | ||
| Geographic Location The region of the country where a company operates is also of importance in selecting the comparative group. The operating environment for thrift institutions varies from region to region with respect to business and economic environments, real estate market conditions, speculative takeover activity, and investment climates. Economic and investor climates can also vary greatly within a region, particularly due to takeover activity. |
55
| Publicly traded thrift stock-form thrift whose shares are traded on a major stock exchange, listed on NASDAQ. | ||
| Non-acquisition target company is not subject to a pending acquisition. | ||
| Ownership profile fully-converted thrifts (excludes mutual holding companies). | ||
| Current financial data publicly reported financial data available as of June 30, 2010. | ||
| Asset size total assets of between $100 million and $500 million. | ||
| Equity level equity to assets greater than 9.00% as of June 30, 2010. | ||
| Profitability Positive earnings for the twelve month period ending June 30, 2010. |
56
Initial | Total | Equity/ | ||||||||||||||||||
No. of | Conversion | Assets | Assets | |||||||||||||||||
Company | City | State | Offices | Date | ($000s) | (%) | ||||||||||||||
Home Federal Bancorp
|
Shreveport | LA | 4 | 01/21/05 | 185,145 | 18.02 | ||||||||||||||
Elmira Savings Bank, FSB
|
Elmira | NY | 10 | 03/01/85 | 499,244 | 11.26 | ||||||||||||||
First Advantage Bancorp
|
Clarksville | TN | 5 | 11/30/07 | 345,089 | 19.72 | ||||||||||||||
First Capital, Inc.
|
Corydon | IN | 13 | 01/04/99 | 457,973 | 10.45 | ||||||||||||||
GS Financial Corp.
|
Metairie | LA | 6 | 04/01/97 | 273,951 | 10.36 | ||||||||||||||
Louisiana Bancorp, Inc.
|
Metairie | LA | 3 | 07/10/07 | 327,743 | 20.51 | ||||||||||||||
LSB Financial Corp.
|
Lafayette | IN | 5 | 02/03/95 | 378,580 | 9.11 | ||||||||||||||
Newport Bancorp, Inc.
|
Newport | RI | 6 | 07/07/06 | 450,400 | 11.20 | ||||||||||||||
North Central Bancshares, Inc.
|
Fort Dodge | IA | 11 | 03/21/96 | 452,130 | 10.76 | ||||||||||||||
Rome Bancorp, Inc.
|
Rome | NY | 5 | 03/30/05 | 329,637 | 18.59 | ||||||||||||||
Wayne Savings Bancshares, Inc.
|
Wooster | OH | 11 | 01/09/03 | 407,460 | 9.32 |
57
58
Comparative | All Public | |||||||||||
Home | Group | Thrift | ||||||||||
Federal | Median | Median | ||||||||||
Profitability
(%)
|
||||||||||||
LTM Return on Average Assets
|
0.40 | 0.48 | 0.22 | |||||||||
LTM Return on Average Equity
|
2.08 | 3.70 | 2.05 | |||||||||
Core Return on Average Assets
|
0.33 | 0.40 | 0.32 | |||||||||
Core Return on Average Equity
|
1.73 | 2.89 | 2.45 | |||||||||
|
||||||||||||
Income
and Expense
(% of avg. assets)
|
||||||||||||
Total Interest Income
|
5.44 | 5.03 | 4.82 | |||||||||
Total Interest Expense
|
2.05 | 1.80 | 1.74 | |||||||||
Net Interest Income
|
3.39 | 2.81 | 3.10 | |||||||||
Provision for Loan Losses
|
0.02 | 0.35 | 0.58 | |||||||||
Other Operating Income
|
0.41 | 0.70 | 0.59 | |||||||||
Net Gains and Nonrecurring Income
|
0.10 | 0.03 | 0.00 | |||||||||
General and Administrative Expense
|
3.08 | 2.95 | 2.85 | |||||||||
Intangibles Amortization Expense
|
| | | |||||||||
Nonrecurring Expense
|
| | | |||||||||
Pre-tax Core Earnings
|
0.70 | 0.63 | 0.44 | |||||||||
Efficiency Ratio
|
79.03 | 68.77 | 79.03 | |||||||||
|
||||||||||||
Yield-Cost Data
(%)
|
||||||||||||
Yield on Interest-earning Assets
|
5.59 | 5.41 | 5.12 | |||||||||
Cost of Interest-bearing Liabilities
|
2.56 | 2.21 | 2.00 | |||||||||
Net Interest Spread
|
3.03 | 3.35 | 3.17 | |||||||||
Net Interest Margin
|
3.48 | 3.49 | 3.30 | |||||||||
|
||||||||||||
Asset Utilization
(% of avg. total assets)
|
||||||||||||
Avg. Interest-earning Assets
|
89.44 | 94.11 | 92.72 | |||||||||
Avg. Interest-bearing Liabilities
|
80.02 | 77.40 | 79.07 | |||||||||
Avg. Net Interest-earning Assets
|
9.42 | 15.68 | 10.85 |
Source: | Home Federal Bancorp; SNL Financial; Feldman Financial |
59
Comparative | All Public | |||||||||||
Home | Group | Thrift | ||||||||||
Federal | Median | Median | ||||||||||
Balance
Sheet Composition
(% of total assets)
|
||||||||||||
Cash and Securities
|
40.33 | 26.48 | 23.11 | |||||||||
Loans Receivable, net
|
50.26 | 68.14 | 69.78 | |||||||||
Real Estate
|
| 0.25 | 0.28 | |||||||||
Intangible Assets
|
| | 0.05 | |||||||||
Other Assets
|
9.41 | 4.65 | 4.85 | |||||||||
Total Deposits
|
63.58 | 72.25 | 73.39 | |||||||||
Borrowed Funds
|
17.02 | 13.48 | 14.00 | |||||||||
Other Liabilities
|
1.38 | 0.92 | 0.97 | |||||||||
Total Equity
|
18.02 | 10.98 | 9.92 | |||||||||
|
||||||||||||
Loan
Portfolio
(% of total loans)
|
||||||||||||
Residential Mortgage Loans
|
38.65 | 46.26 | 39.21 | |||||||||
Other Real Estate Mortgage Loans
|
61.00 | 33.80 | 35.16 | |||||||||
Non-mortgage Loans
|
0.35 | 22.36 | 25.64 | |||||||||
|
||||||||||||
Growth
Rates
(%)
|
||||||||||||
Total Assets
|
19.63 | 0.56 | 1.54 | |||||||||
Total Loans
|
120.75 | (1.63 | ) | 1.34 | ||||||||
Total Deposits
|
36.65 | 4.54 | 5.57 | |||||||||
|
||||||||||||
Regulatory
Capital Ratios
(%)
|
||||||||||||
Tier 1 Leverage Ratio
|
16.47 | 9.47 | 8.99 | |||||||||
Tier 1 Risk-based Capital
|
33.13 | 15.00 | 13.65 | |||||||||
Total Risk-based Capital
|
33.67 | 16.18 | 14.55 | |||||||||
|
||||||||||||
Credit
Risk Ratios
(%)
|
||||||||||||
Nonperforming Loans / Total Loans
|
0.38 | 3.73 | 3.41 | |||||||||
Nonperforming Assets / Total Assets
|
0.19 | 3.55 | 2.77 | |||||||||
Reserves / Total Loans
|
0.52 | 1.24 | 1.50 | |||||||||
Reserves / Nonperforming Assets
|
135.53 | 56.02 | 39.62 |
Source: | Home Federal Bancorp; SNL Financial; Feldman Financial |
60
61
62
63
64
Total | Tang. | Net | ||||||||||||||||||||||||||||||||||||||
Total | Total | Equity/ | Equity/ | Interest | Effcy. | LTM | LTM | Core | Core | |||||||||||||||||||||||||||||||
Assets | Deposits | Assets | Assets | Margin | Ratio | ROA | ROE | ROA | ROE | |||||||||||||||||||||||||||||||
($000s) | ($000s) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | |||||||||||||||||||||||||||||||
Home Federal Bancorp
|
185,145 | 117,722 | 18.02 | 18.02 | 3.48 | 79.03 | 0.40 | 2.08 | 0.33 | 1.73 | ||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Comparative Group Average
|
392,221 | 277,617 | 13.13 | 12.74 | 3.57 | 70.26 | 0.50 | 3.96 | 0.49 | 3.61 | ||||||||||||||||||||||||||||||
Comparative Group Median
|
393,020 | 281,042 | 10.98 | 10.56 | 3.49 | 68.77 | 0.48 | 3.70 | 0.40 | 2.89 | ||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
All Public Thrift Average
|
2,884,729 | 1,796,653 | 11.19 | 10.38 | 3.24 | 73.00 | (0.21 | ) | (5.06 | ) | (0.19 | ) | (5.22 | ) | ||||||||||||||||||||||||||
All Public Thrift Median
|
966,540 | 682,509 | 9.92 | 9.13 | 3.30 | 69.14 | 0.22 | 2.05 | 0.32 | 2.45 | ||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Comparative
Group
|
||||||||||||||||||||||||||||||||||||||||
Elmira Savings Bank, FSB
|
499,244 | 349,443 | 11.26 | 8.89 | 3.62 | 62.32 | 0.95 | 8.66 | 0.93 | 8.51 | ||||||||||||||||||||||||||||||
First Advantage Bancorp
|
345,089 | 218,238 | 19.72 | 19.72 | 3.62 | 77.12 | 0.20 | 1.01 | 0.40 | 1.96 | ||||||||||||||||||||||||||||||
First Capital, Inc.
|
457,973 | 370,783 | 10.45 | 9.36 | 3.66 | 70.06 | 0.52 | 5.06 | 0.53 | 5.15 | ||||||||||||||||||||||||||||||
GS Financial Corp.
|
273,951 | 204,093 | 10.36 | 10.36 | 3.42 | 76.30 | 0.03 | 0.32 | (0.05 | ) | (0.44 | ) | ||||||||||||||||||||||||||||
Louisiana Bancorp, Inc.
|
327,743 | 187,378 | 20.51 | 20.51 | 3.24 | 65.18 | 0.74 | 3.23 | 0.66 | 2.89 | ||||||||||||||||||||||||||||||
LSB Financial Corp.
|
378,580 | 300,721 | 9.11 | 9.11 | 3.30 | 69.20 | 0.23 | 2.44 | 0.23 | 2.44 | ||||||||||||||||||||||||||||||
Newport Bancorp, Inc.
|
450,400 | 261,362 | 11.20 | 11.20 | 3.41 | 80.34 | 0.27 | 2.37 | 0.30 | 2.61 | ||||||||||||||||||||||||||||||
North Central Bancshares, Inc.
|
452,130 | 344,541 | 10.76 | 10.76 | 3.51 | 67.11 | 0.44 | 4.16 | 0.39 | 3.64 | ||||||||||||||||||||||||||||||
Rome Bancorp, Inc.
|
329,637 | 225,787 | 18.59 | 18.59 | 4.42 | 66.63 | 1.08 | 5.98 | 1.04 | 5.77 | ||||||||||||||||||||||||||||||
Wayne Savings Bancshares, Inc.
|
407,460 | 313,819 | 9.32 | 8.86 | 3.46 | 68.34 | 0.58 | 6.38 | NA | NA |
Source: | Home Federal Bancorp; SNL Financial; Feldman Financial. |
65
As a Percent of Average Assets | ||||||||||||||||||||||||||||||||||||||||
Net | Other | Gains & | Loan | Gen. & | Amort. | Pretax | ||||||||||||||||||||||||||||||||||
Interest | Interest | Interest | Oper. | Non-rec. | Loss | Admin. | of | Non-rec. | Core | |||||||||||||||||||||||||||||||
Income | Expense | Income | Income | Income | Prov. | Expense | Intang, | Expense | Earnings | |||||||||||||||||||||||||||||||
Home Federal Bancorp
|
5.44 | 2.05 | 3.39 | 0.41 | 0.10 | 0.02 | 3.08 | 0.00 | 0.00 | 0.70 | ||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Comparative Group Average
|
5.02 | 1.85 | 2.68 | 0.69 | 0.01 | 0.42 | 2.88 | 0.01 | 0.00 | 0.73 | ||||||||||||||||||||||||||||||
Comparative Group Median
|
5.03 | 1.80 | 2.81 | 0.70 | 0.03 | 0.35 | 2.95 | 0.00 | 0.00 | 0.63 | ||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
All Public Thrift Average
|
4.77 | 1.76 | 3.03 | 0.78 | 0.03 | 1.07 | 2.91 | 0.06 | 0.01 | (0.05 | ) | |||||||||||||||||||||||||||||
All Public Thrift Median
|
4.82 | 1.74 | 3.10 | 0.59 | 0.00 | 0.58 | 2.85 | 0.00 | 0.00 | 0.44 | ||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Comparative Group
|
||||||||||||||||||||||||||||||||||||||||
Elmira Savings Bank, FSB
|
4.75 | 1.64 | 2.59 | 0.71 | 0.06 | 0.07 | 2.41 | 0.04 | 0.00 | 1.38 | ||||||||||||||||||||||||||||||
First Advantage Bancorp
|
5.03 | 2.68 | 1.72 | 1.07 | (0.30 | ) | 0.29 | 3.21 | 0.00 | 0.00 | 0.66 | |||||||||||||||||||||||||||||
First Capital, Inc.
|
4.90 | 2.41 | 2.13 | 0.77 | 0.00 | 0.61 | 2.91 | 0.02 | 0.00 | 0.63 | ||||||||||||||||||||||||||||||
GS Financial Corp.
|
5.18 | 1.87 | 3.54 | 0.19 | 0.12 | 0.60 | 2.98 | 0.00 | 0.00 | (0.04 | ) | |||||||||||||||||||||||||||||
Louisiana Bancorp, Inc.
|
5.03 | 2.15 | 1.65 | 0.02 | 0.12 | 0.13 | 2.17 | 0.00 | 0.00 | 1.03 | ||||||||||||||||||||||||||||||
LSB Financial Corp.
|
5.13 | 1.06 | 2.98 | 0.89 | 0.00 | 0.85 | 2.86 | 0.00 | 0.00 | 0.28 | ||||||||||||||||||||||||||||||
Newport Bancorp, Inc.
|
5.02 | 1.08 | 3.39 | 0.54 | (0.04 | ) | 0.15 | 2.98 | 0.00 | 0.00 | 0.56 | |||||||||||||||||||||||||||||
North Central Bancshares, Inc.
|
5.17 | 1.73 | 3.20 | 1.54 | 0.09 | 0.90 | 3.49 | 0.00 | 0.00 | 0.53 | ||||||||||||||||||||||||||||||
Rome Bancorp, Inc.
|
5.17 | 2.36 | 2.84 | 0.70 | 0.06 | 0.17 | 3.10 | NA | (0.00 | ) | 1.57 | |||||||||||||||||||||||||||||
Wayne Savings Bancshares, Inc.
|
4.83 | 1.48 | 2.78 | 0.47 | 0.00 | 0.41 | 2.64 | NA | 0.00 | NA |
Source: | Home Federal Bancorp; SNL Financial; Feldman Financial. |
66
Avg. | Avg. | Avg. Net | ||||||||||||||||||||||||||||||||||||||
Int. Earn. | Int.-Bear. | Earning | Avg. | Yield on | Cost of | Net | Asset | Loan | Deposit | |||||||||||||||||||||||||||||||
Assets/ | Liabs./ | Assets/ | Equity/ | Int.-Earn. | Int-Bear. | Interest | Growth | Growth | Growth | |||||||||||||||||||||||||||||||
Assets | Assets | Assets | Assets | Assets | Liabs. | Spread | Rate | Rate | Rate | |||||||||||||||||||||||||||||||
Home Federal Bancorp
|
89.44 | 80.02 | 9.42 | 17.42 | 5.59 | 2.56 | 3.03 | 19.63 | 120.75 | 36.65 | ||||||||||||||||||||||||||||||
|
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Comparative Group Average
|
93.05 | 77.47 | 14.86 | 13.31 | 5.40 | 2.11 | 3.35 | 0.04 | 2.85 | 4.08 | ||||||||||||||||||||||||||||||
Comparative Group Median
|
94.11 | 77.40 | 15.68 | 10.81 | 5.41 | 2.21 | 3.35 | 0.56 | (1.63 | ) | 4.54 | |||||||||||||||||||||||||||||
|
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All Public Thrift Average
|
92.41 | 78.88 | 11.50 | 10.82 | 5.12 | 2.02 | 3.18 | 3.70 | 0.50 | 8.63 | ||||||||||||||||||||||||||||||
All Public Thrift Median
|
92.72 | 79.07 | 10.85 | 10.10 | 5.12 | 2.00 | 3.17 | 1.54 | (1.34 | ) | 5.57 | |||||||||||||||||||||||||||||
|
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Comparative Group
|
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Elmira Savings Bank, FSB
|
84.39 | 80.91 | 3.48 | 10.93 | 5.63 | 2.10 | 3.53 | (3.21 | ) | (4.43 | ) | (2.86 | ) | |||||||||||||||||||||||||||
First Advantage Bancorp
|
94.64 | NA | NA | 20.30 | 5.36 | NA | NA | (1.48 | ) | 19.23 | 4.82 | |||||||||||||||||||||||||||||
First Capital, Inc.
|
91.61 | NA | NA | 10.22 | 5.34 | NA | NA | 1.92 | (3.76 | ) | 4.98 | |||||||||||||||||||||||||||||
GS Financial Corp.
|
94.04 | 83.92 | 10.12 | 10.40 | 5.49 | 2.32 | 3.17 | 3.48 | 4.39 | 7.63 | ||||||||||||||||||||||||||||||
Louisiana Bancorp, Inc.
|
98.48 | 73.89 | 24.59 | 22.89 | 5.12 | 2.50 | 2.62 | 1.72 | 25.71 | 7.53 | ||||||||||||||||||||||||||||||
LSB Financial Corp.
|
91.98 | NA | NA | 9.03 | 5.46 | NA | NA | 0.81 | 3.84 | 7.04 | ||||||||||||||||||||||||||||||
Newport Bancorp, Inc.
|
94.29 | NA | NA | 11.50 | 5.36 | NA | NA | 0.30 | (0.28 | ) | 1.50 | |||||||||||||||||||||||||||||
North Central Bancshares, Inc.
|
94.17 | NA | NA | 10.70 | 5.53 | NA | NA | (1.89 | ) | (10.09 | ) | 4.02 | ||||||||||||||||||||||||||||
Rome Bancorp, Inc.
|
92.39 | 71.15 | 21.25 | 18.13 | 5.60 | 1.53 | 4.07 | (2.09 | ) | (2.98 | ) | 4.26 | ||||||||||||||||||||||||||||
Wayne Savings Bancshares, Inc.
|
94.51 | NA | NA | 9.03 | 5.07 | NA | NA | 0.84 | (3.14 | ) | 1.88 |
Source: | Home Federal Bancorp; SNL Financial; Feldman Financial. |
67
As a Percent of Total Assets | ||||||||||||||||||||||||||||||||||||||||
Cash & | Net | Real | Intang. | Other | Total | Borrowed | Other | Total | Total | |||||||||||||||||||||||||||||||
Securities | Loans | Estate | Assets | Assets | Deposits | Funds | Liabs. | Liabs. | Equity | |||||||||||||||||||||||||||||||
Home Federal Bancorp
|
40.33 | 50.26 | 0.00 | 0.00 | 9.41 | 63.58 | 17.02 | 1.38 | 81.98 | 18.02 | ||||||||||||||||||||||||||||||
|
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Comparative Group Average
|
24.15 | 70.48 | 0.32 | 0.43 | 4.83 | 70.50 | 15.41 | 0.95 | 86.87 | 13.13 | ||||||||||||||||||||||||||||||
Comparative Group Median
|
26.48 | 68.14 | 0.25 | 0.00 | 4.65 | 72.25 | 13.48 | 0.92 | 89.02 | 10.98 | ||||||||||||||||||||||||||||||
|
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All Public Thrift Average
|
25.29 | 68.55 | 0.58 | 0.78 | 5.10 | 72.23 | 15.46 | 1.14 | 88.81 | 11.19 | ||||||||||||||||||||||||||||||
All Public Thrift Median
|
23.11 | 69.78 | 0.28 | 0.05 | 4.85 | 73.39 | 14.00 | 0.97 | 90.09 | 9.92 | ||||||||||||||||||||||||||||||
|
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Comparative Group
|
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Elmira Savings Bank, FSB
|
33.28 | 60.04 | 0.14 | 2.60 | 3.96 | 69.99 | 17.25 | 1.49 | 88.74 | 11.26 | ||||||||||||||||||||||||||||||
First Advantage Bancorp
|
29.02 | 66.66 | 0.18 | 0.00 | 4.43 | 63.24 | 16.39 | 0.65 | 80.28 | 19.72 | ||||||||||||||||||||||||||||||
First Capital, Inc.
|
26.32 | 67.67 | 0.19 | 1.21 | 4.90 | 80.96 | 8.17 | 0.42 | 89.55 | 10.45 | ||||||||||||||||||||||||||||||
GS Financial Corp.
|
26.63 | 68.60 | 0.72 | 0.00 | 4.45 | 74.50 | 14.23 | 0.91 | 89.64 | 10.36 | ||||||||||||||||||||||||||||||
Louisiana Bancorp, Inc.
|
46.27 | 52.18 | 0.47 | 0.00 | 1.35 | 57.17 | 21.14 | 1.18 | 79.49 | 20.51 | ||||||||||||||||||||||||||||||
LSB Financial Corp.
|
6.44 | 88.24 | 0.32 | 0.00 | 4.85 | 79.43 | 10.83 | 0.62 | 90.89 | 9.11 | ||||||||||||||||||||||||||||||
Newport Bancorp, Inc.
|
15.90 | 77.44 | 0.05 | 0.00 | 6.78 | 58.03 | 29.94 | 0.83 | 88.80 | 11.20 | ||||||||||||||||||||||||||||||
North Central Bancshares, Inc.
|
14.92 | 78.65 | 0.54 | 0.00 | 6.30 | 76.20 | 12.05 | 0.99 | 89.24 | 10.76 | ||||||||||||||||||||||||||||||
Rome Bancorp, Inc.
|
8.02 | 85.21 | 0.01 | 0.00 | 6.88 | 68.50 | 11.41 | 1.50 | 81.41 | 18.59 | ||||||||||||||||||||||||||||||
Wayne Savings Bancshares, Inc.
|
34.68 | 60.10 | 0.59 | 0.51 | 4.42 | 77.02 | 12.73 | 0.93 | 90.68 | 9.32 |
Source: | Home Federal Bancorp; SNL Financial; Feldman Financial. |
68
Tier 1 | Tier 1 | Total | Other | |||||||||||||||||||||||||||||||||||||
Leverage | Risk- | Risk- | Total | Resid. | Real Est. | Nonmtg. | ||||||||||||||||||||||||||||||||||
Capital | based | based | NPLs/ | NPAs/ | Resrvs./ | Resrvs./ | Mtgs./ | Mtgs./ | Loans/ | |||||||||||||||||||||||||||||||
Ratio | Capital | Capital | Loans | Assets | NPAs | Loans | Loans | Loans | Loans | |||||||||||||||||||||||||||||||
Home Federal Bancorp
|
16.47 | 33.13 | 33.67 | 0.38 | 0.19 | 135.53 | 0.52 | 38.65 | 61.00 | 0.35 | ||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Comparative Group Average
|
11.17 | 17.88 | 18.92 | 2.90 | 2.64 | 87.57 | 1.33 | 47.47 | 30.66 | 20.95 | ||||||||||||||||||||||||||||||
Comparative Group Median
|
9.47 | 15.00 | 16.18 | 3.73 | 3.55 | 56.02 | 1.24 | 46.26 | 33.80 | 22.36 | ||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
All Public Thrift Average
|
9.88 | 15.20 | 16.27 | 4.95 | 4.47 | 54.97 | 1.82 | 39.94 | 33.65 | 26.40 | ||||||||||||||||||||||||||||||
All Public Thrift Median
|
8.99 | 13.65 | 14.55 | 3.41 | 2.77 | 39.62 | 1.50 | 39.21 | 35.16 | 25.64 | ||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Comparative Group
|
||||||||||||||||||||||||||||||||||||||||
Elmira Savings Bank, FSB
|
8.68 | 15.54 | 16.65 | NA | NA | NA | 1.00 | NA | NA | NA | ||||||||||||||||||||||||||||||
First Advantage Bancorp
|
13.44 | 18.20 | 19.18 | NA | NA | NA | 1.29 | NA | NA | NA | ||||||||||||||||||||||||||||||
First Capital, Inc.
|
9.02 | 14.04 | 14.70 | NA | NA | NA | 1.26 | 42.85 | NA | NA | ||||||||||||||||||||||||||||||
GS Financial Corp.
|
9.87 | 16.37 | 17.45 | 5.41 | 4.32 | 29.07 | 1.81 | 43.44 | 33.80 | 22.76 | ||||||||||||||||||||||||||||||
Louisiana Bancorp, Inc.
|
17.43 | 38.06 | 39.03 | 0.71 | 0.84 | 66.34 | 1.06 | 54.87 | 34.80 | 10.33 | ||||||||||||||||||||||||||||||
LSB Financial Corp.
|
9.07 | 11.81 | 13.04 | 4.33 | 4.18 | 26.78 | 1.26 | NA | NA | NA | ||||||||||||||||||||||||||||||
Newport Bancorp, Inc.
|
9.03 | 13.67 | 14.87 | 0.32 | 0.30 | 259.65 | 1.00 | NA | NA | NA | ||||||||||||||||||||||||||||||
North Central Bancshares, Inc.
|
9.97 | 14.45 | 15.70 | 3.73 | 3.55 | 56.02 | 2.48 | 40.17 | 37.73 | 22.10 | ||||||||||||||||||||||||||||||
Rome Bancorp, Inc.
|
17.00 | 23.16 | 24.07 | NA | NA | NA | 0.89 | 54.39 | 18.42 | 27.19 | ||||||||||||||||||||||||||||||
Wayne Savings Bancshares, Inc.
|
8.19 | 13.54 | 14.54 | NA | NA | NA | 1.22 | 49.07 | 28.57 | 22.36 |
Source: | Home Federal Bancorp; SNL Financial; Feldman Financial. |
69
70
71
72
73
74
75
76
77
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79
80
81
82
83
Sellers Prior Financial Data | Offer Value to | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Equity/ | YTD | YTD | Offer | Book | Tang. | LTM | Total | ||||||||||||||||||||||||||||||||||||||||||||
B/T | Assets | Assets | ROA | ROE | Date | Status | Value | Value | Book | EPS | Assets | |||||||||||||||||||||||||||||||||||||||||
Buyer | State | Seller | (1) | ($Mil.) | (%) | (%) | (%) | Anncd. | (2) | ($Mil.) | (%) | (%) | (x) | (%) | ||||||||||||||||||||||||||||||||||||||
Average
|
147,318.1 | 10.16 | 0.79 | 6.97 | 29.3 | 159.8 | 164.8 | 24.07 | 16.13 | |||||||||||||||||||||||||||||||||||||||||||
Median
|
70,822.0 | 9.19 | 0.70 | 7.01 | 10.9 | 146.9 | 160.8 | 17.91 | 17.05 | |||||||||||||||||||||||||||||||||||||||||||
Community Trust Finl Corp.
|
LA | First LA Bancshares Inc. | B | 140,226.0 | 10.08 | 0.70 | 7.01 | 04/16/09 | C | 16.8 | 144.9 | 144.9 | 24.99 | 11.96 | ||||||||||||||||||||||||||||||||||||||
Liberty Fncl Services Inc.
|
LA | United Bank & Trust Company | B | 25,378.0 | 6.20 | (0.47 | ) | (7.59 | ) | 02/02/09 | C | NA | NA | NA | NA | NA | ||||||||||||||||||||||||||||||||||||
First Trust Corp.
|
LA | Globe Bancorp Inc. | T | 27,589.0 | 20.24 | 0.11 | 0.57 | 07/02/08 | C | 5.2 | 93.1 | 93.1 | NM | 18.85 | ||||||||||||||||||||||||||||||||||||||
Whitney Holding Corp.
|
LA | Parish National Corp. | B | 762,975.0 | 8.15 | 1.41 | 17.94 | 06/08/08 | C | 165.0 | 265.3 | 277.8 | 17.90 | 21.63 | ||||||||||||||||||||||||||||||||||||||
First NBC Bank Holding Co.
|
LA | Dryades Bancorp Inc. | T | 80,154.0 | 3.49 | NA | NA | 11/15/07 | C | 3.0 | 104.3 | 104.3 | NM | 5.72 | ||||||||||||||||||||||||||||||||||||||
Caldwell Holding Co.
|
LA | Citizens Progressive Bank | B | 41,141.0 | 11.08 | 2.05 | 18.66 | 10/10/07 | C | 8.7 | 190.8 | 190.8 | 15.90 | 21.15 | ||||||||||||||||||||||||||||||||||||||
Saint Martin Bancshares Inc.
|
LA | American Bank | B | 61,490.0 | 16.48 | 1.41 | 8.43 | 08/15/07 | C | 15.1 | 149.0 | 176.7 | 17.91 | 24.56 | ||||||||||||||||||||||||||||||||||||||
Fidelity Homestead SB
|
LA | Your Bank | B | 51,174.0 | 7.48 | NA | NA | 08/10/07 | C | 7.8 | 203.8 | 203.8 | NM | 15.24 | ||||||||||||||||||||||||||||||||||||||
City Savings Bancshares Inc.
|
LA | Louisiana Community Bcshs Inc | B | 151,168.0 | 9.34 | NA | NA | 08/08/07 | C | NA | NA | NA | NA | NA | ||||||||||||||||||||||||||||||||||||||
First Guaranty Bancshares Inc.
|
LA | Homestead Bancorp Inc. | T | 131,886.0 | 9.04 | 0.33 | 3.80 | 01/04/07 | C | 13.1 | 127.0 | 127.0 | 43.63 | 9.92 |
(1) | B=bank; T=thrift. | |
(2) | P=pending; C=completed. | |
Source: SNL Financial. |
84
Pro Forma Ratios | After-Market Trading | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross | Price/ | Price/ | Price/ | 8/27/10 | Price Change | Change | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | Offering | Book | Tang. | LTM | IPO | Closing | One | One | One | Thru | ||||||||||||||||||||||||||||||||||||||||||||
Stock | Conv. | Assets | Proceeds | Value | Book | EPS | Price | Price | Day | Week | Month | 8/27/10 | ||||||||||||||||||||||||||||||||||||||||||
Company | State | Exchange | Date | ($Mil.) | ($Mil.) | (%) | (%) | (x) | ($) | ($) | (%) | (%) | (%) | (%) | ||||||||||||||||||||||||||||||||||||||||
Second-Step Average
|
1,594.5 | 153.1 | 74.0 | 79.2 | 42.5 | NA | NA | 3.2 | 3.9 | 3.6 | 1.3 | |||||||||||||||||||||||||||||||||||||||||||
Second-Step Median
|
682.6 | 32.5 | 70.6 | 76.9 | 24.8 | NA | NA | 4.3 | 2.5 | 0.2 | (2.6 | ) | ||||||||||||||||||||||||||||||||||||||||||
Standard Average
|
421.7 | 51.9 | 57.2 | 59.5 | 25.1 | NA | NA | 7.4 | 5.8 | 6.1 | 15.1 | |||||||||||||||||||||||||||||||||||||||||||
Standard Median
|
246.0 | 26.8 | 58.0 | 58.8 | 23.7 | NA | NA | 0.3 | 1.5 | 3.1 | 10.4 | |||||||||||||||||||||||||||||||||||||||||||
Second-Step Offerings
|
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Jacksonville Bancorp, Inc.
|
IL | NASDAQ | 07/15/10 | 289.4 | 10.4 | 55.2 | 59.9 | 12.4 | 10.00 | 9.99 | 6.5 | 5.8 | 1.3 | (0.1 | ) | |||||||||||||||||||||||||||||||||||||||
Colonial Financial Services, Inc.
|
NJ | NASDAQ | 07/13/10 | 567.9 | 23.0 | 64.7 | 64.7 | 27.8 | 10.00 | 9.85 | 0.5 | (1.6 | ) | (2.6 | ) | (1.5 | ) | |||||||||||||||||||||||||||||||||||||
Oneida Financial Corp.
|
NY | NASDAQ | 07/07/10 | 596.3 | 31.5 | 68.6 | 97.8 | 13.3 | 8.00 | 7.78 | (6.3 | ) | (3.1 | ) | (1.3 | ) | (2.8 | ) | ||||||||||||||||||||||||||||||||||||
ViewPoint Financial Group, Inc.
|
TX | NASDAQ | 07/07/10 | 2,477.4 | 198.6 | 93.6 | 93.9 | 99.2 | 10.00 | 9.17 | (5.0 | ) | (2.9 | ) | (3.0 | ) | (8.3 | ) | ||||||||||||||||||||||||||||||||||||
Fox Chase Bancorp, Inc.
|
PA | NASDAQ | 06/29/10 | 1,156.4 | 87.1 | 72.6 | 72.6 | 142.9 | 10.00 | 9.68 | (4.1 | ) | (3.7 | ) | (1.8 | ) | (3.2 | ) | ||||||||||||||||||||||||||||||||||||
Oritani Financial Corp.
|
NJ | NASDAQ | 06/24/10 | 2,054.2 | 413.6 | 90.6 | 90.6 | 32.8 | 10.00 | 9.61 | 3.1 | 0.0 | (0.9 | ) | (3.9 | ) | ||||||||||||||||||||||||||||||||||||||
Eagle Bancorp Montana, Inc.
|
MT | NASDAQ | 04/05/10 | 306.1 | 24.6 | 81.2 | 81.2 | 12.3 | 10.00 | 9.15 | 5.5 | 5.0 | 4.0 | (8.5 | ) | |||||||||||||||||||||||||||||||||||||||
Ocean Shore Holding Co.
|
NJ | NASDAQ | 12/21/09 | 742.6 | 33.5 | 63.0 | 63.0 | 17.3 | 8.00 | 10.70 | 7.5 | 11.9 | 13.1 | 33.8 | ||||||||||||||||||||||||||||||||||||||||
Northwest Bancshares, Inc.
|
PA | NASDAQ | 12/18/09 | 7,132.0 | 688.8 | 89.0 | 103.8 | 24.8 | 10.00 | 11.03 | 13.5 | 13.0 | 14.0 | 10.3 | ||||||||||||||||||||||||||||||||||||||||
BCSB Bancorp, Inc.
|
MD | NASDAQ | 04/11/08 | 622.5 | 19.8 | 61.8 | 65.0 | NM | 10.00 | 9.75 | 10.4 | 14.9 | 13.5 | (2.5 | ) | |||||||||||||||||||||||||||||||||||||||
Standard Offerings
|
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United American Savings Bank
|
PA | OTCBB | 08/06/10 | 60.2 | 3.0 | 54.2 | 54.2 | 23.7 | 10.00 | 10.50 | 0.0 | (5.0 | ) | NA | 5.0 | |||||||||||||||||||||||||||||||||||||||
Peoples Federal Bancshares, Inc.
|
MA | NASDAQ | 07/07/10 | 487.7 | 66.1 | 65.2 | 65.2 | 27.8 | 10.00 | 10.31 | 4.0 | 7.5 | 4.2 | 3.1 | ||||||||||||||||||||||||||||||||||||||||
Fairmount Bancorp, Inc.
|
MD | OTCBB | 06/03/10 | 67.3 | 4.4 | 44.0 | 44.0 | 10.1 | 10.00 | 12.00 | NA | 5.0 | 10.0 | 20.0 | ||||||||||||||||||||||||||||||||||||||||
Harvard Illinois Bancorp, Inc.
|
IL | OTCBB | 04/09/10 | 157.2 | 7.8 | 43.1 | 43.1 | NM | 10.00 | 6.50 | 0.0 | 0.0 | (1.0 | ) | (35.0 | ) | ||||||||||||||||||||||||||||||||||||||
OBA Financial Services, Inc.
|
MD | NASDAQ | 01/22/10 | 357.9 | 46.3 | 59.4 | 59.4 | NM | 10.00 | 11.04 | 3.9 | 1.5 | 3.0 | 10.4 | ||||||||||||||||||||||||||||||||||||||||
OmniAmerican Bancorp, Inc.
|
TX | NASDAQ | 01/21/10 | 1,006.3 | 119.0 | 62.0 | 62.0 | NM | 10.00 | 11.26 | 18.5 | 14.0 | 9.9 | 12.6 | ||||||||||||||||||||||||||||||||||||||||
Versailles Financial Corporation
|
OH | OTCBB | 01/11/10 | 41.6 | 4.3 | 40.5 | 40.5 | 36.0 | 10.00 | 10.00 | 0.0 | 0.0 | 0.0 | 0.0 | ||||||||||||||||||||||||||||||||||||||||
Athens Bancshares Corporation
|
TN | NASDAQ | 01/07/10 | 246.0 | 26.8 | 58.0 | 58.8 | 13.9 | 10.00 | 10.59 | 16.0 | 15.0 | 10.6 | 5.9 | ||||||||||||||||||||||||||||||||||||||||
Territorial Bancorp Inc.
|
HI | NASDAQ | 07/13/09 | 1,223.8 | 122.3 | 60.1 | 60.2 | 15.9 | 10.00 | 17.25 | 49.9 | 47.2 | 48.0 | 72.5 | ||||||||||||||||||||||||||||||||||||||||
St. Joseph Bancorp, Inc.
|
MO | OTCBB | 02/02/09 | 19.4 | 3.8 | 46.3 | 46.3 | NM | 10.00 | 10.00 | 0.0 | 0.0 | 0.0 | 0.0 | ||||||||||||||||||||||||||||||||||||||||
Hibernia Homestead Bancorp, Inc.
|
LA | OTCBB | 01/28/09 | 50.2 | 11.1 | 48.1 | 48.1 | NM | 10.00 | 13.50 | 0.0 | 5.0 | 5.0 | 35.0 | ||||||||||||||||||||||||||||||||||||||||
First Savings Financial Group, Inc.
|
IN | NASDAQ | 10/07/08 | 215.4 | 24.3 | 51.1 | 51.1 | NM | 10.00 | 13.36 | (1.0 | ) | (4.0 | ) | (8.0 | ) | 33.6 | |||||||||||||||||||||||||||||||||||||
Home Bancorp, Inc.
|
LA | NASDAQ | 10/03/08 | 448.1 | 89.3 | 69.7 | 69.7 | 19.2 | 10.00 | 13.22 | 14.9 | 3.5 | 3.1 | 32.2 | ||||||||||||||||||||||||||||||||||||||||
Cape Bancorp, Inc.
|
NJ | NASDAQ | 02/01/08 | 620.1 | 78.2 | 73.2 | 105.8 | 50.0 | 10.00 | 7.60 | 0.5 | 0.1 | (2.0 | ) | (24.0 | ) | ||||||||||||||||||||||||||||||||||||||
Danvers Bancorp, Inc.
|
MA | NASDAQ | 01/10/08 | 1,324.1 | 171.9 | 83.7 | 83.9 | 29.4 | 10.00 | 15.46 | (2.6 | ) | (2.2 | ) | 2.6 | 54.6 |
85
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88
89
90
Closing | Total | Price/ | Price/ | Price/ | Price/ | Price/ | Total | Tang. | Current | |||||||||||||||||||||||||||||||
Stock | Market | LTM | Core | Book | Tang. | Total | Equity/ | Equity/ | Dividend | |||||||||||||||||||||||||||||||
Price | Value | EPS | EPS | Value | Book | Assets | Assets | Assets | Yield | |||||||||||||||||||||||||||||||
Company | ($) | ($Mil.) | (x) | (x) | (%) | (%) | (%) | (%) | (%) | (%) | ||||||||||||||||||||||||||||||
Home Federal Bancorp,
Inc.
|
||||||||||||||||||||||||||||||||||||||||
Pro Forma Minimum
|
$ | 10.00 | 25.0 | 41.7 | 50.0 | 53.9 | 53.9 | 12.61 | 23.38 | 23.38 | 2.40 | |||||||||||||||||||||||||||||
Pro Forma Midpoint
|
$ | 10.00 | 29.4 | 50.0 | 62.5 | 60.3 | 60.3 | 14.66 | 24.31 | 24.31 | 2.40 | |||||||||||||||||||||||||||||
Pro Forma Maximum
|
$ | 10.00 | 33.8 | 58.8 | 71.4 | 66.1 | 66.1 | 16.65 | 25.22 | 25.22 | 2.40 | |||||||||||||||||||||||||||||
Pro Forma Adjusted
Maximum
|
$ | 10.00 | 38.9 | 66.7 | 83.3 | 72.0 | 72.0 | 18.89 | 26.24 | 26.24 | 2.40 | |||||||||||||||||||||||||||||
Comparative Group
Average
|
NA | 36.0 | 23.7 | 21.7 | 73.0 | 78.9 | 9.62 | 13.13 | 12.74 | 2.24 | ||||||||||||||||||||||||||||||
Comparative Group
Median
|
NA | 36.6 | 17.9 | 17.9 | 74.5 | 75.9 | 7.83 | 10.98 | 10.56 | 2.44 | ||||||||||||||||||||||||||||||
All Public Thrift
Average
(1)
|
NA | 301.4 | 15.3 | 15.3 | 71.0 | 79.2 | 7.89 | 11.19 | 10.38 | 1.98 | ||||||||||||||||||||||||||||||
All Public Thrift
Median
(1)
|
NA | 60.8 | 13.7 | 14.6 | 71.3 | 77.0 | 6.68 | 9.92 | 9.13 | 1.77 | ||||||||||||||||||||||||||||||
Comparative Group
|
||||||||||||||||||||||||||||||||||||||||
Elmira Savings Bank,
FSB
|
$ | 16.00 | 31.3 | 9.7 | 10.0 | 83.1 | 126.7 | 6.52 | 11.26 | 8.89 | 5.00 | |||||||||||||||||||||||||||||
First Advantage Bancorp
|
$ | 10.72 | 44.7 | 67.0 | 33.8 | 66.0 | 66.0 | 13.01 | 19.72 | 19.72 | 1.87 | |||||||||||||||||||||||||||||
First Capital, Inc.
|
$ | 15.00 | 41.8 | 17.9 | 17.7 | 87.5 | 99.0 | 9.13 | 10.45 | 9.36 | 5.07 | |||||||||||||||||||||||||||||
GS Financial Corp.
|
$ | 12.25 | 15.3 | NM | NM | 54.3 | 54.3 | 5.62 | 10.36 | 10.36 | 3.27 | |||||||||||||||||||||||||||||
Louisiana Bancorp, Inc.
|
$ | 14.64 | 61.3 | 26.1 | 29.2 | 91.7 | 91.7 | 18.80 | 20.51 | 20.51 | 0.00 | |||||||||||||||||||||||||||||
LSB Financial Corp.
|
$ | 9.76 | 15.2 | 18.1 | 18.1 | 44.0 | 44.0 | 4.01 | 9.11 | 9.11 | 0.00 | |||||||||||||||||||||||||||||
Newport Bancorp, Inc.
|
$ | 11.75 | 42.8 | 34.6 | 31.1 | 84.8 | 84.8 | 9.49 | 11.20 | 11.20 | 0.00 | |||||||||||||||||||||||||||||
North Central
Bancshares, Inc.
|
$ | 15.27 | 20.6 | 13.8 | 16.6 | 53.6 | 53.6 | 4.67 | 10.76 | 10.76 | 0.26 | |||||||||||||||||||||||||||||
Rome Bancorp, Inc.
|
$ | 9.24 | 62.6 | 16.5 | 17.1 | 102.2 | 102.2 | 19.00 | 18.59 | 18.59 | 3.90 | |||||||||||||||||||||||||||||
Wayne Savings
Bancshares, Inc.
|
$ | 8.00 | 24.0 | 9.9 | NA | 63.3 | 66.9 | 5.90 | 9.32 | 8.86 | 3.00 |
(1) | Excludes mutual holding companies and companies subject to announced acquisitions. | |
Source: Home Federal Bancorp, Inc.; SNL Financial; Feldman Financial. |
91
I-1
Feldman Financial Advisors, Inc. Exhibit II-1 Home Federal Bancorp Consolidated Balance Sheet As of June 30, 2010 and 2009 June 30, 2010 2009 Assets: Cash and cash equivalents $8,837 $ 10,007 Investment securities available for sale 63,688 92,647 Investment securities held to maturity 2,138 2,184 Loans held for sale 13,403 1,277 Loans receivable, net 93,056 46,948 Accrued interest receivable 560 543 Premises and equipment, net 3,049 982 Other assets 414 178 Real estate acquired through foreclosure - Total Assets $185,145 $154,766 Liabilities and Stockholders Equity Liabilities Deposits $117,722 $86,146 Advances by borrowers for taxes and insurance 205 137 Advances from FHLB Dallas 31,507 35,997 Deferred tax liability 921 94 Other accrued expenses and liabilities 1,425 1,082 Total liabilities 151,780 123,456 Retained Earnings: Preferred stock - - Common stock 14 14 Additional paid in capital 13,655 13,608 Treasury stock (2,094) (1,887) Unearned ESOP stock (826) (883) Unearned RRP trust stock (145) (269) Retained earnings 20,665 20,288 Accumulated other comprehensive income (loss) 2,096 439 Total Stockholders equity 33,365 31,310 Total Liabilities and Stockholders Equity $185,145 $154,766 Source: Home Federal Bancorp, audited and unaudited financial statements. |
II-2
Feldman Financial Advisors, Inc. Exhibit II-2 Home Federal Bancorp Consolidated Income Statements For the Years Ended June 30, 2010 and 2009 Years Ended June 30, 2010 2009 (in thousands) Interest Income Loans, including fees $5,218 $2,238 Mortgage-backed securities 3,874 5,221 Investment securities 69 112 Other interet-earning assets 8 25 Total Interest Income 9,169 7,596 Interest Expense Deposits 2,238 2,463 FHLB borrowings 1,220 1,375 Total Interest Expense 3,458 3,838 Net Interest Income 5,711 3,758 Provision for Loan Losses 36 240 Net Interest Income After Provisions for Loan Losses 5,675 3,518 Non-Interest Income Gain on sale of loans 644 2 Gain on sale of securities 796 325 Other income 55 36 Impairment charge on securities (627) Loss on sale of real estate (4) Total Non-Interest Income 864 363 Non-Interest Expenses Compensation and benefits 3,383 1,783 Occupancy and equipment 406 230 Franchise and bank shares tax 150 150 Merger and stock issuance costs 133 Other expense 1,257 817 Total Non-Interest Expenses 5,196 3,113 Income Before Income Taxes 1,343 768 Provision for Income Taxes 673 253 Net Income $ 670 $515 Earnings per Share Basic $0.21 $0.16 Diluted $0.21 $0.16 Source: Home Federal Bancorp, audited and unaudited financial statements. |
II-3
June 30, | ||||||||||||||||
2010 | 2009 | |||||||||||||||
|
|
|||||||||||||||
Amount | % | Amount | % | |||||||||||||
Real estate loans:
|
||||||||||||||||
One- to four-family residential
|
$ | 36,257 | 38.65 | % | $ | 22,106 | 46.50 | % | ||||||||
Commercial-real estate secured:
|
||||||||||||||||
Owner occupied
|
14,550 | 15.51 | 8,193 | 17.23 | ||||||||||||
Non-owner occupied
|
872 | 0.93 | 0 | 0.00 | ||||||||||||
Total commercial-real estate secured
|
15,422 | 16.44 | 8,193 | 17.23 | ||||||||||||
Multi-family residential
|
9,079 | 9.68 | 4,884 | 10.27 | ||||||||||||
Commercial business
|
17,896 | 19.08 | 6,252 | 13.15 | ||||||||||||
Home equity loans and second mortgage loans
|
2,963 | 3.16 | 4,914 | 10.34 | ||||||||||||
Equity lines of credit
|
4,069 | 4.34 | 451 | 0.95 | ||||||||||||
Total real estate loans
|
93,479 | 99.65 | 47,138 | 99.16 | ||||||||||||
Non-real estate loans:
|
||||||||||||||||
Savings accounts
|
285 | 0.30 | 359 | 0.76 | ||||||||||||
Automobile
|
48 | 0.05 | 40 | 0.08 | ||||||||||||
Total non-real estate loans
|
333 | 0.35 | 399 | 0.84 | ||||||||||||
Total loans
|
93,812 | 100.00 | 47,537 | 100.00 | ||||||||||||
Less:
|
||||||||||||||||
Allowance for loan losses
|
(489 | ) | (466 | ) | ||||||||||||
Deferred loan fees
|
(267 | ) | (123 | ) | ||||||||||||
Net loans(1)
|
$ | 93,056 | $ | 46,948 | ||||||||||||
(1) | Does not include loans held for sale amounting to $13.4 million and $1.3 million at June 30, 2010 and June 30, 2009, respectively. |
II-4
Feldman Financial Advisors, Inc. Exhibit II-4 Home Federal Bancorp Securities Portfolio As of June 30, 2010 and 2009 June 30, 2010 2009 Amortized Fair Amortized Fair Cost Value Cost Value (in thousands) Securities held-to-maturity FHLB stock $1,840 $1,840 $1,806 $1,806 Mortgage-backed securities 298 323 378 389 Total securities held-to-maturity 2,138 2,163 2,184 2,195 Securities available-for-sale Debt securities Corporate securities 1,538 1,559 2,415 1,727 Mortgage-backed securities 58,974 62,129 89,567 90,920 Total securities available-for-sale 60,512 63,688 91,982 92,647 Total investment securities $62,650 $65,851 $94,166 $94,842 Source: Home Federal Bancorp, audited and unaudited financial statements. |
II-5
Feldman Financial Advisors, Inc. Exhibit II-5 Home Federal Bancorp Deposit Portfolio As of June 30, 2010 and 2009 June 30, 2010 2009 Amount % Amount % Certificate accounts: 0.00% - 0.99% $12 0.01 $134 0.16 1.00% 1.99% 30,309 25.75 11,970 13.90 2.00% 2.99% 16,734 14.21 13,030 15.13 3.00% 3.99% 17,497 14.86 21,405 24.85 4.00% 4.99% 7,865 6.68 12,990 15.08 5.00% - 5.99% 1,473 1.25 3,272 3.80 Total certificate accounts 73,890 62.77 62,801 72.90 Transaction accounts: Savings 5,266 4.47 6,056 7.03 NOW 18,130 15.40 8,537 9.91 Money market 20,436 17.36 8,752 10.16 Total transaction accounts 43,832 37.23 23,345 27.10 Total deposits $117,722 100.00 $ 86,146 100.00 Source: Home Federal Bancorp, audited and unaudited financial statements. |
II-6
Total | Tang. | Closing | Total | Price/ | Price/ | Price/ | Price/ | Price/ | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | LTM | LTM | Equity/ | Equity/ | Price | Market | LTM | Core | Book | Tang. | Total | Div. | ||||||||||||||||||||||||||||||||||||||||||||
Assets | ROA | ROE | Assets | Assets | 8/27/10 | Value | EPS | EPS | Value | Book | Assets | Yield | ||||||||||||||||||||||||||||||||||||||||||||
Company | Ticker | State | ($Mil.) | (%) | (%) | (%) | (%) | ($) | ($Mil.) | (x) | (x) | (%) | (%) | (%) | (%) | |||||||||||||||||||||||||||||||||||||||||
All Public Thrifts (non-MHCs)
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Abington Bancorp, Inc.
|
ABBC | PA | 1,268 | (0.43 | ) | (2.47 | ) | 16.76 | 16.76 | 10.17 | 205.2 | NM | NM | 97.4 | 97.4 | 16.32 | 1.97 | |||||||||||||||||||||||||||||||||||||||
Anchor BanCorp Wisconsin Inc.
|
ABCW | WI | 3,999 | (2.71 | ) | (194.40 | ) | 0.61 | 0.51 | 0.63 | 13.7 | NM | NM | NM | NM | 0.35 | | |||||||||||||||||||||||||||||||||||||||
Astoria Financial Corporation
|
AF | NY | 19,670 | 0.22 | 3.70 | 6.24 | 5.35 | 12.43 | 1,216.6 | 25.4 | 27.6 | 99.2 | 116.8 | 6.19 | 4.18 | |||||||||||||||||||||||||||||||||||||||||
Athens Bancshares Corporation
|
AFCB | TN | 282 | 0.06 | 0.45 | 17.81 | 17.67 | 10.59 | 29.4 | NA | NA | 58.6 | 59.1 | 10.43 | 1.89 | |||||||||||||||||||||||||||||||||||||||||
Bank Mutual Corporation
|
BKMU | WI | 3,483 | 0.16 | 1.38 | 11.49 | 10.10 | 5.25 | 240.0 | 40.4 | NM | 60.4 | 69.9 | 6.90 | 2.29 | |||||||||||||||||||||||||||||||||||||||||
BankAtlantic Bancorp, Inc.
|
BBX | FL | 4,656 | (3.66 | ) | (112.94 | ) | 1.66 | 1.34 | 1.18 | 70.0 | NM | NM | 82.6 | 102.9 | 1.37 | | |||||||||||||||||||||||||||||||||||||||
BankFinancial Corporation
|
BFIN | IL | 1,566 | 0.01 | 0.07 | 16.57 | 15.16 | 8.96 | 188.7 | NM | 76.9 | 72.7 | 80.9 | 12.05 | 3.13 | |||||||||||||||||||||||||||||||||||||||||
BCSB Bancorp, Inc.
|
BCSB | MD | 622 | (0.21 | ) | (2.07 | ) | 9.79 | 9.78 | 9.75 | 30.4 | NM | NM | 60.3 | 60.4 | 4.97 | | |||||||||||||||||||||||||||||||||||||||
Beacon Federal Bancorp, Inc.
|
BFED | NY | 1,072 | 0.48 | 5.08 | 9.92 | 9.92 | 10.00 | 64.9 | 12.1 | 10.4 | 61.3 | 61.3 | 6.08 | 2.00 | |||||||||||||||||||||||||||||||||||||||||
Berkshire Hills Bancorp, Inc.
|
BHLB | MA | 2,748 | (0.58 | ) | (3.89 | ) | 14.00 | 8.16 | 17.92 | 251.5 | NM | NM | 65.4 | 119.7 | 9.15 | 3.57 | |||||||||||||||||||||||||||||||||||||||
BofI Holding, Inc.
|
BOFI | CA | 1,421 | 1.56 | 19.98 | 9.13 | 9.13 | 11.80 | 120.2 | 5.3 | 6.8 | 96.3 | 96.3 | 8.49 | | |||||||||||||||||||||||||||||||||||||||||
Broadway Financial Corporation
|
BYFC | CA | 552 | (1.01 | ) | (16.21 | ) | 6.02 | 6.02 | 2.86 | 5.0 | NM | NM | 28.9 | 28.9 | 0.93 | 1.40 | |||||||||||||||||||||||||||||||||||||||
Brookline Bancorp, Inc.
|
BRKL | MA | 2,659 | 0.96 | 5.13 | 18.59 | 17.17 | 9.38 | 553.8 | 22.3 | 23.7 | 112.5 | 124.0 | 20.84 | 3.62 | |||||||||||||||||||||||||||||||||||||||||
Cape Bancorp, Inc.
|
CBNJ | NJ | 1,072 | (1.54 | ) | (12.49 | ) | 12.20 | 10.27 | 7.60 | 101.2 | NM | NM | 77.3 | 93.9 | 9.44 | | |||||||||||||||||||||||||||||||||||||||
Carver Bancorp, Inc.
|
CARV | NY | 804 | (0.38 | ) | (4.60 | ) | 7.39 | 7.37 | 4.83 | 12.0 | NM | NA | 29.6 | 29.8 | 1.53 | 2.07 | |||||||||||||||||||||||||||||||||||||||
Central Bancorp, Inc.
|
CEBK | MA | 527 | 0.45 | 5.54 | 8.63 | 8.24 | 9.85 | 16.4 | 8.4 | 7.3 | 45.8 | 48.9 | 3.18 | 2.03 | |||||||||||||||||||||||||||||||||||||||||
Central Federal Corporation
|
CFBK | OH | 275 | (5.10 | ) | (58.76 | ) | 6.23 | 6.18 | 1.08 | 4.5 | NM | NM | 43.7 | 44.4 | 1.65 | | |||||||||||||||||||||||||||||||||||||||
CFS Bancorp, Inc.
|
CITZ | IN | 1,095 | (0.09 | ) | (0.89 | ) | 10.30 | 10.29 | 4.37 | 47.4 | NM | NM | 42.0 | 42.1 | 4.33 | 0.92 | |||||||||||||||||||||||||||||||||||||||
Chicopee Bancorp, Inc.
|
CBNK | MA | 557 | (0.27 | ) | (1.54 | ) | 16.98 | 16.98 | 11.05 | 69.7 | NM | NM | 74.0 | 74.0 | 12.57 | | |||||||||||||||||||||||||||||||||||||||
Citizens Community Bancorp, Inc.
|
CZWI | WI | 576 | 0.13 | 1.35 | 9.78 | 8.75 | 4.03 | 20.6 | 28.8 | 11.6 | 36.6 | 41.3 | 3.58 | | |||||||||||||||||||||||||||||||||||||||||
Citizens South Banking Corporation
|
CSBC | NC | 1,077 | (2.22 | ) | (21.08 | ) | 8.95 | 8.78 | 5.62 | 61.0 | NM | NM | 81.2 | 83.4 | 5.83 | 2.85 | |||||||||||||||||||||||||||||||||||||||
CMS Bancorp, Inc.
|
CMSB | NY | 243 | (0.11 | ) | (1.19 | ) | 8.75 | 8.75 | 10.50 | 19.6 | NM | NM | 92.2 | 92.2 | 8.06 | | |||||||||||||||||||||||||||||||||||||||
Colonial Financial Services, Inc.
|
COBK | NJ | 579 | 0.53 | 6.56 | 8.37 | 8.37 | 9.85 | 41.1 | 13.1 | 10.6 | 84.8 | 84.8 | 7.10 | | |||||||||||||||||||||||||||||||||||||||||
Community Financial Corporation
|
CFFC | VA | 552 | 0.71 | 7.97 | 9.02 | 9.02 | 4.31 | 18.8 | 6.1 | 6.1 | 50.0 | 50.0 | 3.48 | | |||||||||||||||||||||||||||||||||||||||||
Danvers Bancorp, Inc.
|
DNBK | MA | 2,529 | 0.57 | 4.95 | 11.63 | 10.42 | 15.46 | 326.8 | 23.4 | 23.1 | 112.4 | 127.1 | 13.07 | 0.52 | |||||||||||||||||||||||||||||||||||||||||
Dime Community Bancshares, Inc.
|
DCOM | NY | 4,148 | 0.90 | 12.05 | 7.59 | 6.33 | 12.74 | 440.1 | 11.9 | 11.5 | 139.9 | 169.9 | 10.61 | 4.40 | |||||||||||||||||||||||||||||||||||||||||
Eagle Bancorp Montana, Inc.
|
EBMT | MT | 326 | 0.79 | 7.33 | 16.10 | 16.10 | 9.15 | 37.4 | 16.9 | 17.1 | 71.3 | 71.3 | 11.47 | 3.06 | |||||||||||||||||||||||||||||||||||||||||
Elmira Savings Bank, FSB
|
ESBK | NY | 499 | 0.95 | 8.66 | 11.26 | 8.89 | 16.00 | 31.3 | 9.7 | 10.0 | 83.1 | 126.7 | 6.52 | 5.00 | |||||||||||||||||||||||||||||||||||||||||
ESB Financial Corporation
|
ESBF | PA | 1,948 | 0.66 | 7.74 | 8.89 | 6.85 | 13.20 | 158.8 | 12.0 | 11.0 | 91.6 | 121.5 | 8.16 | 3.03 | |||||||||||||||||||||||||||||||||||||||||
ESSA Bancorp, Inc.
|
ESSA | PA | 1,067 | 0.47 | 2.67 | 16.55 | 16.55 | 11.18 | 151.2 | 29.4 | 32.2 | 85.6 | 85.6 | 14.17 | 1.79 |
III-1
Total | Tang. | Closing | Total | Price/ | Price/ | Price/ | Price/ | Price/ | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | LTM | LTM | Equity/ | Equity/ | Price | Market | LTM | Core | Book | Tang. | Total | Div. | ||||||||||||||||||||||||||||||||||||||||||||
Assets | ROA | ROE | Assets | Assets | 8/27/10 | Value | EPS | EPS | Value | Book | Assets | Yield | ||||||||||||||||||||||||||||||||||||||||||||
Company | Ticker | State | ($Mil.) | (%) | (%) | (%) | (%) | ($) | ($Mil.) | (x) | (x) | (%) | (%) | (%) | (%) | |||||||||||||||||||||||||||||||||||||||||
FFD Financial Corporation
|
FFDF | OH | 206 | 0.49 | 5.32 | 8.86 | 8.86 | 14.98 | 15.1 | 15.8 | 15.8 | 82.8 | 82.8 | 7.33 | 4.54 | |||||||||||||||||||||||||||||||||||||||||
Fidelity Bancorp, Inc.
|
FSBI | PA | 708 | (0.39 | ) | (5.97 | ) | 6.82 | 6.47 | 5.38 | 16.4 | NM | NM | 39.5 | 42.2 | 2.34 | 1.49 | |||||||||||||||||||||||||||||||||||||||
First Advantage Bancorp
|
FABK | TN | 345 | 0.20 | 1.01 | 19.72 | 19.72 | 10.72 | 44.7 | 67.0 | 33.8 | 66.0 | 66.0 | 13.01 | 1.87 | |||||||||||||||||||||||||||||||||||||||||
First Bancshares, Inc.
|
FBSI | MO | 214 | (0.40 | ) | (3.72 | ) | 11.22 | 11.16 | 8.50 | 13.2 | NM | NM | 55.0 | 55.3 | 6.17 | | |||||||||||||||||||||||||||||||||||||||
First Capital, Inc.
|
FCAP | IN | 458 | 0.52 | 5.06 | 10.45 | 9.36 | 15.00 | 41.8 | 17.9 | 17.7 | 87.5 | 99.0 | 9.13 | 5.07 | |||||||||||||||||||||||||||||||||||||||||
First Clover Leaf Financial Corp.
|
FCLF | IL | 563 | 0.19 | 1.47 | 13.82 | 11.83 | 5.58 | 44.2 | 37.2 | 29.6 | 56.9 | 68.0 | 7.86 | 4.30 | |||||||||||||||||||||||||||||||||||||||||
First Community Bank Corporation of America
|
FCFL | FL | 516 | (2.89 | ) | (35.98 | ) | 7.38 | 7.38 | 1.23 | 6.7 | NM | NM | 34.3 | 34.3 | 1.35 | | |||||||||||||||||||||||||||||||||||||||
First Defiance Financial Corp.
|
FDEF | OH | 2,039 | 0.22 | 1.89 | 11.70 | 8.82 | 8.96 | 72.7 | 29.9 | 13.4 | 36.0 | 52.8 | 3.63 | | |||||||||||||||||||||||||||||||||||||||||
First Federal Bancshares of Arkansas, Inc.
|
FFBH | AR | 678 | (5.67 | ) | (72.58 | ) | 6.55 | 6.55 | 1.70 | 8.2 | NM | NM | 29.2 | 29.2 | 1.24 | | |||||||||||||||||||||||||||||||||||||||
First Federal of Northern Michigan
Bancorp, Inc.
|
FFNM | MI | 227 | (2.73 | ) | (25.84 | ) | 10.35 | 10.05 | 2.75 | 7.9 | NM | NM | 33.8 | 34.9 | 3.49 | | |||||||||||||||||||||||||||||||||||||||
First Financial Holdings, Inc.
|
FFCH | SC | 3,324 | (1.07 | ) | (10.98 | ) | 9.74 | 8.69 | 10.09 | 166.8 | NM | NM | 64.4 | 75.6 | 5.12 | 1.98 | |||||||||||||||||||||||||||||||||||||||
First Financial Northwest, Inc.
|
FFNW | WA | 1,307 | (4.30 | ) | (24.86 | ) | 14.30 | 14.30 | 4.03 | 75.8 | NM | NM | 40.6 | 40.6 | 5.80 | | |||||||||||||||||||||||||||||||||||||||
First Franklin Corporation
|
FFHS | OH | 281 | (0.82 | ) | (10.82 | ) | 7.77 | 7.77 | 7.05 | 11.9 | NM | NM | 54.5 | 54.5 | 4.23 | | |||||||||||||||||||||||||||||||||||||||
First PacTrust Bancorp, Inc.
|
FPTB | CA | 881 | (0.08 | ) | (0.71 | ) | 10.94 | 10.94 | 9.61 | 40.8 | NM | NM | 52.8 | 52.8 | 4.73 | 2.08 | |||||||||||||||||||||||||||||||||||||||
First Place Financial Corp.
|
FPFC | OH | 3,154 | (0.94 | ) | (11.10 | ) | 8.04 | 7.78 | 3.72 | 63.1 | NM | NM | 34.4 | 36.1 | 2.05 | | |||||||||||||||||||||||||||||||||||||||
First Savings Financial Group, Inc.
|
FSFG | IN | 501 | 0.51 | 4.40 | 10.68 | 9.15 | 13.36 | 32.3 | 13.1 | 9.2 | 60.2 | 71.5 | 6.43 | | |||||||||||||||||||||||||||||||||||||||||
Flagstar Bancorp, Inc.
|
FBC | MI | 13,694 | (3.65 | ) | (61.20 | ) | 7.86 | 7.86 | 2.43 | 372.7 | NM | NM | 46.0 | 46.0 | 2.78 | | |||||||||||||||||||||||||||||||||||||||
Flushing Financial Corporation
|
FFIC | NY | 4,252 | 0.72 | 8.30 | 8.93 | 8.55 | 11.21 | 350.2 | 11.3 | 10.3 | 92.2 | 96.8 | 8.24 | 4.64 | |||||||||||||||||||||||||||||||||||||||||
Fox Chase Bancorp, Inc.
|
FXCB | PA | 1,243 | (0.07 | ) | (0.61 | ) | 16.60 | 16.60 | 9.68 | 140.8 | NM | NM | 68.2 | 68.2 | 11.33 | | |||||||||||||||||||||||||||||||||||||||
GS Financial Corp.
|
GSLA | LA | 274 | 0.03 | 0.32 | 10.36 | 10.36 | 12.25 | 15.3 | NM | NM | 54.3 | 54.3 | 5.62 | 3.27 | |||||||||||||||||||||||||||||||||||||||||
Hampden Bancorp, Inc.
|
HBNK | MA | 584 | (0.06 | ) | (0.37 | ) | 16.23 | 16.23 | 10.00 | 71.5 | NM | NA | NA | NA | NA | 1.20 | |||||||||||||||||||||||||||||||||||||||
Harleysville Savings Financial Corporation
|
HARL | PA | 867 | 0.59 | 9.76 | 6.05 | 6.05 | 15.00 | 55.1 | 11.0 | 10.9 | 105.0 | 105.0 | 6.36 | 5.07 | |||||||||||||||||||||||||||||||||||||||||
HF Financial Corp.
|
HFFC | SD | 1,253 | 0.48 | 6.82 | 7.54 | 7.21 | 9.40 | 65.3 | 9.4 | 8.1 | 69.1 | 72.5 | 5.21 | 4.79 | |||||||||||||||||||||||||||||||||||||||||
Hingham Institution for Savings
|
HIFS | MA | 972 | 0.99 | 13.93 | 7.10 | 7.10 | 37.30 | 79.2 | 8.6 | 8.6 | 114.9 | 114.9 | 8.15 | 2.47 | |||||||||||||||||||||||||||||||||||||||||
HMN Financial, Inc.
|
HMNF | MN | 975 | (0.84 | ) | (8.70 | ) | 9.21 | 9.21 | 4.00 | 17.2 | NM | NA | 26.2 | 26.2 | 1.81 | | |||||||||||||||||||||||||||||||||||||||
Home Bancorp, Inc.
|
HBCP | LA | 709 | 0.66 | 2.91 | 18.71 | 18.49 | 13.22 | 111.7 | 28.1 | NA | 84.5 | 85.7 | 15.81 | | |||||||||||||||||||||||||||||||||||||||||
Home Federal Bancorp, Inc.
|
HOME | ID | 869 | 0.71 | 2.81 | 23.68 | 23.68 | 12.58 | 209.9 | 32.3 | NM | 102.0 | 102.0 | 24.15 | 1.75 | |||||||||||||||||||||||||||||||||||||||||
HopFed Bancorp, Inc.
|
HFBC | KY | 1,106 | 0.34 | 4.27 | 10.29 | 10.21 | 9.01 | 64.8 | 13.7 | 6.8 | 65.3 | 66.0 | 5.75 | 5.33 | |||||||||||||||||||||||||||||||||||||||||
Hudson City Bancorp, Inc.
|
HCBK | NJ | 60,933 | 0.94 | 10.49 | 9.10 | 8.86 | 11.62 | 6,119.2 | 10.2 | 11.0 | 110.4 | 113.6 | 10.04 | 5.16 | |||||||||||||||||||||||||||||||||||||||||
Jacksonville Bancorp, Inc.
|
JXSB | IL | 297 | 0.57 | 6.50 | 8.78 | 7.94 | 9.99 | 19.2 | 11.8 | 14.9 | 73.7 | 82.4 | 6.48 | 3.00 | |||||||||||||||||||||||||||||||||||||||||
Jefferson Bancshares, Inc.
|
JFBI | TN | 631 | (3.64 | ) | (31.06 | ) | 8.96 | NA | 3.62 | 24.1 | NM | NA | 42.7 | NA | 3.82 | |
III-2
Total | Tang. | Closing | Total | Price/ | Price/ | Price/ | Price/ | Price/ | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | LTM | LTM | Equity/ | Equity/ | Price | Market | LTM | Core | Book | Tang. | Total | Div. | ||||||||||||||||||||||||||||||||||||||||||||
Assets | ROA | ROE | Assets | Assets | 8/27/10 | Value | EPS | EPS | Value | Book | Assets | Yield | ||||||||||||||||||||||||||||||||||||||||||||
Company | Ticker | State | ($Mil.) | (%) | (%) | (%) | (%) | ($) | ($Mil.) | (x) | (x) | (%) | (%) | (%) | (%) | |||||||||||||||||||||||||||||||||||||||||
Legacy Bancorp, Inc.
|
LEGC | MA | 956 | (0.86 | ) | (6.53 | ) | 12.43 | 11.00 | 8.00 | 69.5 | NM | NM | 58.6 | 67.3 | 7.28 | 2.50 | |||||||||||||||||||||||||||||||||||||||
Louisiana Bancorp, Inc.
|
LABC | LA | 328 | 0.74 | 3.23 | 20.51 | 20.51 | 14.64 | 61.3 | 26.1 | 29.2 | 91.7 | 91.7 | 18.80 | | |||||||||||||||||||||||||||||||||||||||||
LSB Financial Corp.
|
LSBI | IN | 379 | 0.23 | 2.44 | 9.11 | 9.11 | 9.76 | 15.2 | 18.1 | 18.1 | 44.0 | 44.0 | 4.01 | | |||||||||||||||||||||||||||||||||||||||||
Mayflower Bancorp, Inc.
|
MFLR | MA | 254 | 0.51 | 6.23 | 8.28 | 8.28 | 8.20 | 17.1 | 13.4 | NA | 81.4 | 81.4 | 6.74 | 2.93 | |||||||||||||||||||||||||||||||||||||||||
Meta Financial Group, Inc.
|
CASH | IA | 961 | 0.95 | 17.01 | 7.26 | 6.99 | 33.45 | 103.2 | 11.1 | 14.1 | 147.7 | 153.8 | 10.73 | 1.55 | |||||||||||||||||||||||||||||||||||||||||
MutualFirst Financial, Inc.
|
MFSF | IN | 1,442 | 0.22 | 2.43 | 9.32 | 8.99 | 7.04 | 49.2 | 35.2 | 12.6 | 47.9 | 50.5 | 3.49 | 3.41 | |||||||||||||||||||||||||||||||||||||||||
NASB Financial, Inc.
|
NASB | MO | 1,416 | 0.67 | 6.14 | 11.68 | 11.51 | 13.79 | 108.5 | 10.6 | 20.2 | 65.6 | 66.7 | 7.66 | | |||||||||||||||||||||||||||||||||||||||||
New Hampshire Thrift Bancshares, Inc.
|
NHTB | NH | 993 | 0.78 | 8.23 | 9.31 | 6.58 | 10.20 | 58.9 | 8.7 | 11.6 | 71.3 | 110.1 | 5.99 | 5.10 | |||||||||||||||||||||||||||||||||||||||||
New York Community Bancorp, Inc.
|
NYB | NY | 42,011 | 1.34 | 10.54 | 12.96 | 7.39 | 15.89 | 6,920.8 | 12.3 | 13.3 | 127.1 | 237.3 | 16.47 | 6.29 | |||||||||||||||||||||||||||||||||||||||||
Newport Bancorp, Inc.
|
NFSB | RI | 450 | 0.27 | 2.37 | 11.20 | 11.20 | 11.75 | 42.8 | 34.6 | 31.1 | 84.8 | 84.8 | 9.49 | | |||||||||||||||||||||||||||||||||||||||||
North Central Bancshares, Inc.
|
FFFD | IA | 452 | 0.44 | 4.16 | 10.76 | 10.76 | 15.27 | 20.6 | 13.8 | 16.6 | 53.6 | 53.6 | 4.67 | 0.26 | |||||||||||||||||||||||||||||||||||||||||
Northwest Bancshares, Inc.
|
NWBI | PA | 8,136 | 0.55 | 4.11 | 16.11 | 14.25 | 11.03 | 1,221.9 | 28.3 | 23.3 | 93.2 | 107.8 | 15.02 | 3.63 | |||||||||||||||||||||||||||||||||||||||||
OBA Financial Services, Inc.
|
OBAF | MD | 379 | NA | NA | 21.11 | NA | 11.04 | 51.1 | NA | NA | 63.9 | NA | 13.50 | | |||||||||||||||||||||||||||||||||||||||||
Ocean Shore Holding Co.
|
OSHC | NJ | 799 | 0.68 | 5.97 | 12.49 | 12.49 | 10.70 | 78.2 | 14.3 | 14.3 | 78.4 | 78.4 | 9.79 | 2.24 | |||||||||||||||||||||||||||||||||||||||||
OceanFirst Financial Corp.
|
OCFC | NJ | 2,220 | 0.86 | 9.54 | 8.78 | 8.78 | 11.82 | 222.5 | 12.2 | 11.6 | 114.2 | 114.2 | 10.02 | 4.06 | |||||||||||||||||||||||||||||||||||||||||
OmniAmerican Bancorp, Inc.
|
OABC | TX | 1,130 | 0.12 | 0.98 | 17.78 | 17.78 | 11.26 | 134.0 | NA | NA | 66.7 | 66.7 | 11.86 | | |||||||||||||||||||||||||||||||||||||||||
Oneida Financial Corp.
|
ONFC | NY | 613 | 0.59 | 5.95 | 9.91 | 6.12 | 7.78 | 55.7 | 16.2 | 11.8 | 95.8 | 166.5 | 9.13 | 6.75 | |||||||||||||||||||||||||||||||||||||||||
Oritani Financial Corp.
|
ORIT | NJ | 2,477 | 0.41 | 3.26 | 25.97 | 25.97 | 9.61 | 540.1 | 64.1 | 68.7 | 84.0 | 84.0 | 21.80 | 3.12 | |||||||||||||||||||||||||||||||||||||||||
Park Bancorp, Inc.
|
PFED | IL | 214 | (2.23 | ) | (20.46 | ) | 10.15 | 10.15 | 4.27 | 5.1 | NM | NM | 23.4 | 23.4 | 2.38 | | |||||||||||||||||||||||||||||||||||||||
Parkvale Financial Corporation
|
PVSA | PA | 1,842 | (0.87 | ) | (11.23 | ) | 6.46 | 4.99 | 6.60 | 36.5 | NM | NA | 41.9 | 62.2 | 2.02 | 3.03 | |||||||||||||||||||||||||||||||||||||||
Peoples Federal Bancshares, Inc.
|
PEOP | MA | 575 | NA | NA | 9.27 | 9.27 | 10.31 | 73.6 | NA | NA | NA | NA | NA | | |||||||||||||||||||||||||||||||||||||||||
Peoples United Financial, Inc.
|
PBCT | CT | 21,950 | 0.38 | 1.55 | 24.66 | 18.02 | 12.79 | 4,743.6 | 55.6 | 39.6 | 86.9 | 129.4 | 21.43 | 4.85 | |||||||||||||||||||||||||||||||||||||||||
Provident Financial Holdings, Inc.
|
PROV | CA | 1,399 | 0.08 | 0.94 | 9.13 | 9.13 | 5.31 | 60.6 | 40.9 | NM | 47.4 | 47.4 | 4.33 | 0.75 | |||||||||||||||||||||||||||||||||||||||||
Provident Financial Services, Inc.
|
PFS | NJ | 6,823 | 0.58 | 4.45 | 13.35 | 8.61 | 11.78 | 705.9 | 16.8 | 15.7 | 77.5 | 126.8 | 10.35 | 3.74 | |||||||||||||||||||||||||||||||||||||||||
Provident New York Bancorp
|
PBNY | NY | 2,964 | 0.70 | 4.76 | 14.48 | 9.44 | 8.17 | 315.5 | 15.7 | 19.2 | 73.6 | 119.5 | 10.65 | 2.94 | |||||||||||||||||||||||||||||||||||||||||
Pulaski Financial Corp.
|
PULB | MO | 1,388 | 0.06 | 0.70 | 8.22 | 7.95 | 6.40 | 69.2 | NM | NM | 79.3 | 83.5 | 4.86 | 5.94 | |||||||||||||||||||||||||||||||||||||||||
PVF Capital Corp.
|
PVFC | OH | 860 | 0.16 | 2.21 | 9.68 | 9.68 | 1.92 | 49.2 | 17.5 | 17.7 | 59.1 | 59.1 | 5.73 | | |||||||||||||||||||||||||||||||||||||||||
River Valley Bancorp
|
RIVR | IN | 394 | 0.75 | 10.21 | 8.12 | 8.11 | 14.95 | 22.6 | 8.3 | 8.6 | 83.5 | 83.7 | 5.80 | 5.62 | |||||||||||||||||||||||||||||||||||||||||
Riverview Bancorp, Inc.
|
RVSB | WA | 863 | (0.47 | ) | (4.48 | ) | 9.98 | 7.20 | 1.83 | 41.1 | NM | NM | 23.3 | 33.4 | 2.32 | | |||||||||||||||||||||||||||||||||||||||
Rome Bancorp, Inc.
|
ROME | NY | 330 | 1.08 | 5.98 | 18.59 | 18.59 | 9.24 | 62.6 | 16.5 | 17.1 | 102.2 | 102.2 | 19.00 | 3.90 | |||||||||||||||||||||||||||||||||||||||||
Severn Bancorp, Inc.
|
SVBI | MD | 1,002 | (0.71 | ) | (6.45 | ) | 10.54 | 10.51 | 4.01 | 40.4 | NM | NM | 51.1 | 51.3 | 4.14 | |
III-3
Total | Tang. | Closing | Total | Price/ | Price/ | Price/ | Price/ | Price/ | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | LTM | LTM | Equity/ | Equity/ | Price | Market | LTM | Core | Book | Tang. | Total | Div. | ||||||||||||||||||||||||||||||||||||||||||||
Assets | ROA | ROE | Assets | Assets | 8/27/10 | Value | EPS | EPS | Value | Book | Assets | Yield | ||||||||||||||||||||||||||||||||||||||||||||
Company | Ticker | State | ($Mil.) | (%) | (%) | (%) | (%) | ($) | ($Mil.) | (x) | (x) | (%) | (%) | (%) | (%) | |||||||||||||||||||||||||||||||||||||||||
Superior Bancorp
|
SUPR | AL | 3,358 | (2.16 | ) | (32.63 | ) | 4.45 | 4.02 | 1.24 | 15.6 | NM | NM | 11.3 | 12.6 | 0.47 | | |||||||||||||||||||||||||||||||||||||||
Teche Holding Company
|
TSH | LA | 765 | 0.94 | 9.75 | 9.74 | 9.30 | 29.50 | 61.6 | 8.6 | 8.4 | 82.8 | 87.1 | 8.06 | 4.81 | |||||||||||||||||||||||||||||||||||||||||
Territorial Bancorp Inc.
|
TBNK | HI | 1,447 | 0.60 | 3.89 | 15.42 | 15.42 | 17.25 | 211.0 | NA | NA | 94.6 | 94.6 | 14.59 | 1.62 | |||||||||||||||||||||||||||||||||||||||||
TF Financial Corporation
|
THRD | PA | 721 | 0.55 | 5.54 | 10.17 | 9.60 | 21.40 | 57.5 | 13.7 | 14.9 | 78.4 | 83.6 | 7.97 | 3.74 | |||||||||||||||||||||||||||||||||||||||||
Timberland Bancorp, Inc.
|
TSBK | WA | 732 | (0.34 | ) | (2.77 | ) | 11.70 | 10.94 | 3.75 | 26.4 | NM | NM | 37.8 | 41.5 | 3.69 | | |||||||||||||||||||||||||||||||||||||||
TrustCo Bank Corp NY
|
TRST | NY | 3,829 | 0.83 | 12.35 | 6.66 | 6.65 | 5.50 | 423.5 | 14.1 | 15.2 | 165.7 | 166.0 | 11.04 | 4.80 | |||||||||||||||||||||||||||||||||||||||||
United Community Financial Corp.
|
UCFC | OH | 2,314 | (1.14 | ) | (11.78 | ) | 9.19 | 9.17 | 1.28 | 39.6 | NM | NM | 18.6 | 18.6 | 1.71 | | |||||||||||||||||||||||||||||||||||||||
United Financial Bancorp, Inc.
|
UBNK | MA | 1,545 | 0.55 | 3.54 | 14.44 | 13.98 | 13.98 | 228.0 | 27.4 | 21.9 | 102.5 | 106.5 | 14.80 | 2.29 | |||||||||||||||||||||||||||||||||||||||||
United Western Bancorp, Inc.
|
UWBK | CO | 2,221 | (3.49 | ) | (58.22 | ) | 5.28 | 5.28 | 0.47 | 13.9 | NM | NM | 11.8 | 11.8 | 0.62 | | |||||||||||||||||||||||||||||||||||||||
ViewPoint Financial Group, Inc.
|
VPFG | TX | 2,764 | 0.46 | 5.39 | 7.70 | 7.66 | 9.17 | 319.7 | 27.8 | 27.3 | 150.2 | 151.0 | 11.57 | 1.74 | |||||||||||||||||||||||||||||||||||||||||
Washington Federal, Inc.
|
WFSL | WA | 13,710 | 0.86 | 6.50 | 13.39 | NA | 14.43 | 1,623.0 | 14.2 | 34.8 | 88.4 | NA | 11.84 | 1.39 | |||||||||||||||||||||||||||||||||||||||||
Wayne Savings Bancshares, Inc.
|
WAYN | OH | 407 | 0.58 | 6.38 | 9.32 | 8.86 | 8.00 | 24.0 | 9.9 | NA | 63.3 | 66.9 | 5.90 | 3.00 | |||||||||||||||||||||||||||||||||||||||||
Westfield Financial, Inc.
|
WFD | MA | 1,235 | 0.35 | 1.66 | 19.40 | 19.40 | 7.82 | 230.4 | 55.9 | 57.0 | 95.4 | 95.4 | 18.52 | 3.07 | |||||||||||||||||||||||||||||||||||||||||
WSB Holdings, Inc.
|
WSB | MD | 418 | (1.43 | ) | (11.82 | ) | 12.49 | 12.49 | 2.30 | 18.2 | NM | NM | 34.8 | 34.8 | 4.35 | | |||||||||||||||||||||||||||||||||||||||
WSFS Financial Corporation
|
WSFS | DE | 3,792 | 0.10 | 1.28 | 8.30 | 7.98 | 37.01 | 314.1 | NM | 56.5 | 100.3 | 105.7 | 7.04 | 1.30 | |||||||||||||||||||||||||||||||||||||||||
WVS Financial Corp.
|
WVFC | PA | 355 | 0.10 | 1.24 | 7.84 | 7.84 | 11.40 | 23.5 | 63.3 | NA | 84.4 | 84.4 | 6.61 | 5.61 | |||||||||||||||||||||||||||||||||||||||||
Average
|
2,885 | (0.21 | ) | (5.06 | ) | 11.19 | 10.38 | 301.4 | 15.3 | 15.3 | 71.0 | 79.2 | 7.89 | 1.98 | ||||||||||||||||||||||||||||||||||||||||||
Median
|
967 | 0.22 | 2.05 | 9.92 | 9.13 | 60.8 | 13.7 | 14.6 | 71.3 | 77.0 | 6.68 | 1.77 |
III-4
1. | The total amount of the net offering proceeds from the sale of the 63.8% MHC owned interest to the public was fully invested at the beginning of the applicable period. | |
2. | The new holding company will sell 50.0% of the shares of common stock in the subscription offering and community offering and 50.0% in a syndicated community offering. | |
3. | The net offering proceeds are invested to yield a return of 1.79%, which represented the yield on five-year U.S. Treasury securities at June 30, 2010. The effective income tax rate was assumed to be 34.0%, resulting in a net after-tax yield of 1.18%. | |
4. | It is assumed that 6.0% of the shares of common stock sold in the offering will be acquired by the Companys ESOP. Pro forma adjustments have been made to earnings and equity to reflect the impact of the ESOP purchase. The annual expense is estimated based on a twenty-year period. No reinvestment is assumed on proceeds used to fund the ESOP. | |
5. | Assumes that open market purchases of shares equal to 4.0% of the shares of common stock sold in the offering for the recognition plan (RSP). Pro forma adjustments have been made to earnings and equity to reflect the impact of the RSP. The annual expense is estimated based on a five-year vesting period. No reinvestment is assumed on proceeds used to fund the RSP. | |
6. | The adjustment to pro forma net income for stock options reflects the compensation expense associated with the stock options that may be granted, if the plan is approved by stockholders. A number of shares equal to 10.0% of the shares of common stock sold in the offering, is assumed. We assumed that the options would vest at a rate of 20% per year and that compensation expense would be recognized on a straight-line basis over the 5-year vesting period. | |
7. | Fixed offering expenses are estimated at $950,000. | |
8. | Marketing fees for the stock offering are estimated at 1.0% of the amount of stock sold in the subscription offering and 6.0% of the amount sold in the syndicated offering, excluding sales to directors, officers, employees, and stock-benefit plans. | |
9. | 25,200 shares of common stock will be purchased by Home Federal Bancorps executive officers and directors, and their immediate families. | |
10. | No effect has been given to withdrawals from deposit accounts for the purpose of purchasing common stock in the offering. | |
11. | No effect has been given in the pro forma equity calculation for the assumed earnings on the net proceeds. |
IV-1
Minimum | Midpoint | Maximum | Adj. Max. | |||||||||||||||||
Shares issued
|
100.0 | % | 2,498,231 | 2,939,095 | 3,379,959 | 3,886,954 | ||||||||||||||
Exchange ratio
|
0.7464 | 0.8781 | 1.0098 | 1.1612 | ||||||||||||||||
Shares exchanged
|
36.2 | % | 904,481 | 1,064,095 | 1,223,709 | 1,407,266 | ||||||||||||||
Shares sold
|
63.8 | % | 1,593,750 | 1,875,000 | 2,156,250 | 2,479,688 | ||||||||||||||
Offering price
|
$ | 10.00 | $ | 10.00 | $ | 10.00 | $ | 10.00 | ||||||||||||
Gross proceeds
|
$ | 15,938 | $ | 18,750 | $ | 21,563 | $ | 24,797 | ||||||||||||
Less: estimated expenses
|
(1,496 | ) | (1,592 | ) | (1,689 | ) | (1,800 | ) | ||||||||||||
Net offering proceeds
|
14,442 | 17,158 | 19,873 | 22,996 | ||||||||||||||||
Plus: MHC capital addition
|
100 | 100 | 100 | 100 | ||||||||||||||||
Less: ESOP purchase
|
(956 | ) | (1,125 | ) | (1,294 | ) | (1,488 | ) | ||||||||||||
Less: RSP purchase
|
(638 | ) | (750 | ) | (863 | ) | (992 | ) | ||||||||||||
Net investable proceeds
|
$ | 12,948 | $ | 15,383 | $ | 17,816 | $ | 20,616 | ||||||||||||
Net Income: (LTM period)
|
||||||||||||||||||||
LTM ended 06/30/2010
|
$ | 670 | $ | 670 | $ | 670 | $ | 670 | ||||||||||||
Pro forma income on net proceeds
|
153 | 182 | 210 | 243 | ||||||||||||||||
Pro forma state shares and franchise tax
|
(42 | ) | (50 | ) | (58 | ) | (66 | ) | ||||||||||||
Pro forma ESOP adjustment
|
(32 | ) | (37 | ) | (43 | ) | (49 | ) | ||||||||||||
Pro forma RSP adjustment
|
(84 | ) | (99 | ) | (114 | ) | (131 | ) | ||||||||||||
Pro forma option adjustment
|
(77 | ) | (91 | ) | (104 | ) | (120 | ) | ||||||||||||
Pro forma net income
|
$ | 588 | $ | 575 | $ | 561 | $ | 547 | ||||||||||||
Pro forma earnings per share
|
$ | 0.24 | $ | 0.20 | $ | 0.17 | $ | 0.15 | ||||||||||||
Core Earnings: (LTM period)
|
||||||||||||||||||||
LTM ended 06/30/2010
|
$ | 558 | $ | 558 | $ | 558 | $ | 558 | ||||||||||||
Pro forma income on net proceeds
|
153 | 182 | 210 | 243 | ||||||||||||||||
Pro forma state shares and franchise tax
|
(42 | ) | (50 | ) | (58 | ) | (66 | ) | ||||||||||||
Pro forma ESOP adjustment
|
(32 | ) | (37 | ) | (43 | ) | (49 | ) | ||||||||||||
Pro forma RSP adjustment
|
(84 | ) | (99 | ) | (114 | ) | (131 | ) | ||||||||||||
Pro forma option adjustment
|
(77 | ) | (91 | ) | (104 | ) | (120 | ) | ||||||||||||
Pro forma core earnings
|
$ | 476 | $ | 463 | $ | 450 | $ | 436 | ||||||||||||
Pro forma core earnings per share
|
$ | 0.20 | $ | 0.16 | $ | 0.14 | $ | 0.12 | ||||||||||||
Total Equity
|
$ | 33,365 | $ | 33,365 | $ | 33,365 | $ | 33,365 | ||||||||||||
Net offering proceeds
|
14,442 | 17,158 | 19,873 | 22,996 | ||||||||||||||||
Plus: MHC capital addition
|
100 | 100 | 100 | 100 | ||||||||||||||||
Less: ESOP purchase
|
(956 | ) | (1,125 | ) | (1,294 | ) | (1,488 | ) | ||||||||||||
Less: RSP purchase
|
(638 | ) | (750 | ) | (863 | ) | (992 | ) | ||||||||||||
Pro forma total equity
|
$ | 46,313 | $ | 48,748 | $ | 51,182 | $ | 53,982 | ||||||||||||
Pro forma book value
|
$ | 18.54 | $ | 16.59 | $ | 15.14 | $ | 13.89 | ||||||||||||
Tangible Equity
|
$ | 33,365 | $ | 33,365 | $ | 33,365 | $ | 33,365 | ||||||||||||
Net offering proceeds
|
14,442 | 17,158 | 19,873 | 22,996 | ||||||||||||||||
Plus: MHC capital addition
|
100 | 100 | 100 | 100 | ||||||||||||||||
Less: ESOP purchase
|
(956 | ) | (1,125 | ) | (1,294 | ) | (1,488 | ) | ||||||||||||
Less: RSP purchase
|
(638 | ) | (750 | ) | (863 | ) | (992 | ) | ||||||||||||
Pro forma tangible equity
|
$ | 46,313 | $ | 48,748 | $ | 51,182 | $ | 53,982 | ||||||||||||
Pro forma tangible book value
|
$ | 18.54 | $ | 16.59 | $ | 15.14 | $ | 13.89 | ||||||||||||
Total Assets
|
$ | 185,145 | $ | 185,145 | $ | 185,145 | $ | 185,145 | ||||||||||||
Net offering proceeds
|
14,442 | 17,158 | 19,873 | 22,996 | ||||||||||||||||
Plus: MHC capital addition
|
100 | 100 | 100 | 100 | ||||||||||||||||
Less: ESOP purchase
|
(956 | ) | (1,125 | ) | (1,294 | ) | (1,488 | ) | ||||||||||||
Less: RSP purchase
|
(638 | ) | (750 | ) | (863 | ) | (992 | ) | ||||||||||||
Pro forma total assets
|
$ | 198,093 | $ | 200,528 | $ | 202,962 | $ | 205,762 | ||||||||||||
Pro Forma Ratios:
|
||||||||||||||||||||
Price / EPS - 06/30/10 LTM
|
41.7 | 50.0 | 58.8 | 66.7 | ||||||||||||||||
Price / EPS - 06/30/10 Core
|
50.0 | 62.5 | 71.4 | 83.3 | ||||||||||||||||
Price / Book Value
|
53.9 | % | 60.3 | % | 66.1 | % | 72.0 | % | ||||||||||||
Price / Tangible Book Value
|
53.9 | % | 60.3 | % | 66.1 | % | 72.0 | % | ||||||||||||
Price / Total Assets
|
12.61 | % | 14.66 | % | 16.65 | % | 18.89 | % | ||||||||||||
Equity / Assets
|
23.38 | % | 24.31 | % | 25.22 | % | 26.24 | % | ||||||||||||
Tangible Equity / Assets
|
23.38 | % | 24.31 | % | 25.22 | % | 26.24 | % |
IV-2
Valuation Parameters | Symbol | Data | ||||||
Net income LTM as tax-effected
|
Y | $ | 670,000 | |||||
Core earnings LTM as tax-effected
|
Y | 558,460 | ||||||
Net worth
|
B | 33,365,000 | ||||||
Tangible net worth
|
B | 33,365,000 | ||||||
Total assets
|
A | 185,145,000 | ||||||
Expenses in conversion
|
X | 1,592,480 | ||||||
Other proceeds not reinvested
|
O | 1,875,000 | ||||||
ESOP purchase
|
E | 1,125,000 | ||||||
ESOP expense (pre-tax)
|
F | 37,000 | ||||||
RSP purchase
|
M | 750,000 | ||||||
RSP expense (pre-tax)
|
N | 99,000 | ||||||
Stock option expense (pre-tax)
|
Q | 91,000 | ||||||
Option expense tax-deductible
|
D | 0.00 | % | |||||
Re-investment rate (after-tax)
|
R | 1.18 | % | |||||
Tax rate
|
T | 34.00 | % | |||||
Shares for EPS
|
S | 2,832,220 | ||||||
|
||||||||
Pro Forma Valuation Ratios at Midpoint Value | ||||||||
Price / EPS LTM
|
P | /E | 50.00 | x | ||||
Price / Core EPS LTM
|
P | /E | 62.50 | x | ||||
Price / Book Value
|
P | /B | 60.28 | % | ||||
Price / Tangible Book
|
P/TB | 60.28 | % | |||||
Price / Assets
|
P | /A | 14.66 | % |
Pro Forma Calculation at Midpoint Value (1) | Based on | |||||
V =
|
(P/E / S)*((Y-R*(O+X)-(F+N)*(1-T)-(Q-Q*D*T)))
|
= $29,390,950 | [Earnings] | |||
|
||||||
V =
|
(P/E / S)*((Y-R*(O+X)-(F+N)*(1-T)))
|
= $29,390,950 | [Core earings] | |||
|
||||||
V =
|
P/B * (B X E M)
|
= $29,390,950 | [Book value] | |||
|
||||||
V =
|
P/TB * (B X E M)
|
= $29,390,950 | [Tangible book] | |||
|
||||||
V =
|
P/A * (B X E M)
|
= $29,390,950 | [Total assets] |
Pro Forma Valuation Range (1) | ||||||||||||||||||||||||
Minimum =
|
$ | 29,390,950 | x | 0.85 | = | $ | 24,982,310 | |||||||||||||||||
Midpoint =
|
$ | 29,390,950 | x | 1.00 | = | $ | 29,390,950 | |||||||||||||||||
Maximum =
|
$ | 29,390,950 | x | 1.15 | = | $ | 33,799,590 | |||||||||||||||||
Adj. Max.
|
$ | 33,799,590 | x | 1.15 | = | $ | 38,869,540 |
IV-3
Home | Comparative | |||||||||||||||||||||||
Valuation | Federal | Group | All Public | |||||||||||||||||||||
Ratio | Symbol | Bancorp | Average | Median | Average | Median | ||||||||||||||||||
Price / EPS
|
P/E | 23.7 | 17.9 | 15.3 | 13.7 | |||||||||||||||||||
Minimum
|
(X | ) | 41.7 | 75.7 | % | 133.3 | % | 172.3 | % | 203.7 | % | |||||||||||||
Midpoint
|
50.0 | 110.8 | % | 180.0 | % | 226.8 | % | 264.4 | % | |||||||||||||||
Maximum
|
58.8 | 148.0 | % | 229.4 | % | 284.4 | % | 328.7 | % | |||||||||||||||
Adj. Maximum
|
66.7 | 181.1 | % | 273.3 | % | 335.7 | % | 385.9 | % | |||||||||||||||
|
||||||||||||||||||||||||
Price / Core EPS
|
P/E | 21.7 | 17.9 | 15.3 | 14.6 | |||||||||||||||||||
Minimum
|
(X | ) | 50.0 | 130.6 | % | 179.9 | % | 225.8 | % | 243.4 | % | |||||||||||||
Midpoint
|
62.5 | 188.2 | % | 249.8 | % | 307.2 | % | 329.3 | % | |||||||||||||||
Maximum
|
71.4 | 229.4 | % | 299.8 | % | 365.4 | % | 390.6 | % | |||||||||||||||
Adj. Maximum
|
83.3 | 284.3 | % | 366.5 | % | 442.9 | % | 472.3 | % | |||||||||||||||
|
||||||||||||||||||||||||
Price / Book Value
|
P/B | 73.0 | 74.5 | 71.0 | 71.3 | |||||||||||||||||||
Minimum
|
(% | ) | 53.9 | -26.1 | % | -27.6 | % | -24.1 | % | -24.3 | % | |||||||||||||
Midpoint
|
60.3 | -17.5 | % | -19.1 | % | -15.1 | % | -15.4 | % | |||||||||||||||
Maximum
|
66.1 | -9.6 | % | -11.4 | % | -7.0 | % | -7.3 | % | |||||||||||||||
Adj. Maximum
|
72.0 | -1.4 | % | -3.4 | % | 1.4 | % | 1.0 | % | |||||||||||||||
|
||||||||||||||||||||||||
Price / Tangible Book
|
P/TB | 78.9 | 75.9 | 79.2 | 77.0 | |||||||||||||||||||
Minimum
|
(% | ) | 53.9 | -31.6 | % | -28.9 | % | -31.9 | % | -29.9 | % | |||||||||||||
Midpoint
|
60.3 | -23.6 | % | -20.5 | % | -23.8 | % | -21.7 | % | |||||||||||||||
Maximum
|
66.1 | -16.3 | % | -12.9 | % | -16.6 | % | -14.2 | % | |||||||||||||||
Adj. Maximum
|
72.0 | -8.8 | % | -5.1 | % | -9.0 | % | -6.5 | % | |||||||||||||||
|
||||||||||||||||||||||||
Price / Total Assets
|
P/A | 9.62 | 7.83 | 7.89 | 6.68 | |||||||||||||||||||
Minimum
|
(% | ) | 12.6 | 31.2 | % | 61.2 | % | 59.8 | % | 88.9 | % | |||||||||||||
Midpoint
|
14.7 | 52.4 | % | 87.3 | % | 85.7 | % | 119.6 | % | |||||||||||||||
Maximum
|
16.7 | 73.2 | % | 112.8 | % | 111.0 | % | 149.5 | % | |||||||||||||||
Adj. Maximum
|
18.9 | 96.5 | % | 141.4 | % | 139.4 | % | 183.0 | % |
IV-4
x |
Please Mark Votes
As in This Example |
2. |
The following Information Proposals:
|
Please be sure to date this Proxy and
sign in the box below.
|
Date | ||||
|
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Co-holder (if any) sign above | ||||