Exhibit 99.6
Feldman Financial Advisors, Inc.
8804 Mirador Place
McLean, VA 22102
(202) 467-6862
Monroe Federal
Savings and Loan Association
Tipp City, Ohio
Conversion Valuation Appraisal Update
Valued as of July 18, 2024
Prepared By
Feldman Financial Advisors, Inc.
McLean, Virginia
Feldman Financial Advisors, Inc.
8804 Mirador Place
McLean, VA 22102
202-467-6862
July 18, 2024
Board of Directors
Monroe Federal Savings and Loan Association
24 East Main Street
Tipp City, Ohio 45371
Members of the Board of Directors:
At your request, we have completed and hereby provide an independent appraisal (the “Appraisal”) of the estimated pro forma market value of Monroe Federal Savings and Loan Association (“Monroe Federal” or the “Association”) as of July 18, 2024 in conjunction with the Association’s conversion (the “Conversion”) from the mutual form of organization to the stock form of organization, issuance of all of its capital stock to a newly formed stock holding company known as Monroe Federal Bancorp, Inc. (“Monroe Federal Bancorp”), and offering for sale of Monroe Federal Bancorp’s common stock to eligible depositors and borrowers of the Association, the Association’s employee stock ownership plan, and certain members of the general public in the subscription and community offering (the “Stock Offering”). This updated Appraisal is being furnished in connection with the reporting of recent operating results by the Association and a review of current thrift stock market conditions.
Feldman Financial Advisors, Inc. (“Feldman Financial”) is a financial consulting and advisory firm that specializes in valuations and analyses of business enterprises and securities in the thrift, banking, and mortgage industries. The background of Feldman Financial is presented in Exhibit I. In preparing the original and updated Appraisals, we conducted an analysis of the Association that included discussions with the Association’s management and the Association’s legal counsel, Luse Gorman, PC. In addition, where appropriate, we considered information based on other available published sources that we believe are reliable; however, we cannot guarantee the accuracy and completeness of such information. We also reviewed, among other factors, the economy in the Association’s primary market area and compared the Association’s financial condition and operating performance with that of selected publicly traded thrift institutions. We reviewed conditions in the securities markets in general and in the market for thrift institution common stocks in particular. Our original Appraisal of Monroe Federal as of May 24, 2024 is incorporated and supplemented herein by reference.
Our Appraisal is not intended and must not be construed to be a recommendation of any kind as to the advisability of purchasing shares of common stock in the offering. Moreover, because such valuations are necessarily based upon estimates and projections of a number of matters, all of which are subject to change from time to time, no assurance can be given that persons who purchase shares of stock in the offering will thereafter be able to sell such shares at prices related to our estimate of the Association’s initial pro forma market value.
Feldman Financial Advisors, Inc.
Board of Directors
Monroe Federal Savings and Loan Association
July 18, 2024
Page 2
Recent Financial Performance
Table 1 summarizes Monroe Federal’s key balance sheet data and Table 2 presents the balance sheet concentration ratios as of March 31, 2023 and 2024 and June 30, 2024. Table 3 summarizes the Association’s recent income statement data for the fiscal and year-to-date periods. Table 4 displayed selected financial ratios of the Association for the recent historical periods.
Table 1
Summary Balance Sheet Data
As of March 31, 2023 and 2024 and June 30, 2024
(Dollars in Thousands)
| June 30, | March 31, | |||||||||||
| 2024 | 2024 | 2023 | ||||||||||
| Total assets | $ | 147,475 | $ | 155,337 | $ | 151,441 | ||||||
| Cash and cash equivalents | 1,883 | 10,618 | 2,928 | |||||||||
| Available-for-sale securities | 24,610 | 25,181 | 28,079 | |||||||||
| Restricted stock | 608 | 515 | 809 | |||||||||
| Total loans, net | 108,947 | 107,869 | 108,652 | |||||||||
| Bank-owned life insurance | 3,518 | 3,491 | 3,390 | |||||||||
| Premises and equipment, net | 5,289 | 5,340 | 5,476 | |||||||||
| Total deposits | 129,304 | 142,092 | 127,296 | |||||||||
| Federal funds purchased | - | - | 865 | |||||||||
| Federal Home Loan Bank advances | 7,600 | 3,000 | 12,500 | |||||||||
| Total equity | 8,339 | 8,565 | 8,786 | |||||||||
Source: Monroe Federal Savings and Loan Association, financial statements.
Monroe Federal’s total assets amounted to $147.5 million at June 30, 2024, reflecting a decrease of $7.9 million or 5.1% from total assets of $155.3 million at March 31, 2024. The decrease in assets was primarily due to a decline in cash and cash equivalents of $8.7 million and a reduction in available-for-sale securities of $572,000, which were offset partially by an increase in net total loans of $1.1 million. Cash and cash equivalents decreased by $8.7 million or 82.3% to $1.9 million at June 30, 2024 from $10.6 million at March 31, 2024. The decrease was due mainly to a decline in deposits during the quarter. Available-for-sale securities decreased $572,000 or 2.3% to $24.6 million at June 30, 2024 from $25.2 million at March 31, 2024. During the quarter ended June 30, 2024, calls, maturities, and repayments of securities totaled $433,000 and the level of unrealized losses on securities increased by $139,000.
Feldman Financial Advisors, Inc.
Board of Directors
Monroe Federal Savings and Loan Association
July 18, 2024
Page 3
Table 2
Balance Sheet Concentration Ratios
As of March 31, 2023 and 2024 and June 30, 2024
(Percent of Total Assets)
| June 30, | March 31, | |||||||||||
| 2024 | 2024 | 2023 | ||||||||||
| Cash and cash equivalents | 1.28 | % | 6.84 | % | 1.93 | % | ||||||
| Available-for-sale securities | 16.69 | 16.21 | 18.54 | |||||||||
| Restricted stock | 0.41 | 0.33 | 0.53 | |||||||||
| Total loans, net | 73.87 | 69.44 | 71.75 | |||||||||
| Bank-owned life insurance | 2.39 | 2.25 | 2.24 | |||||||||
| Premises and equipment, net | 3.59 | 3.44 | 3.62 | |||||||||
| Other assets | 1.78 | 1.50 | 1.39 | |||||||||
| Total assets | 100.00 | % | 100.00 | % | 100.00 | % | ||||||
| Total deposits | 87.68 | % | 91.47 | % | 84.06 | % | ||||||
| Borrowed funds | 5.15 | 1.93 | 8.83 | |||||||||
| Other liabilities | 1.51 | 1.08 | 1.32 | |||||||||
| Total liabilities | 94.35 | 94.49 | 94.20 | |||||||||
| Total equity | 5.65 | 5.51 | 5.80 | |||||||||
| Total liabilities and equity | 100.00 | % | 100.00 | % | 100.00 | % | ||||||
Source: Monroe Federal Savings and Loan Association, financial statements.
The Association’s net total loans increased by $1.1 million or 1.0% to $108.9 million at June 30, 2024 from $107.9 million at March 31, 2024. During the quarter ended June 30, 2024, loan originations totaled $2.5 million, mainly comprising $1.9 million of loans secured by one- to four-family residential real estate, $178,000 of home equity loans, $72,000 of construction and land loans, and $73,000 of commercial business loans. Consumer loan originations totaled $187,000, the majority of which were automobile loans.
During the recent quarter, residential real estate loans increased $1.3 million or 1.9% to $70.5 million at June 30, 2024 and home equity lines of credit increased $528,000 or 12.6% to $4.7 million at June 30, 2024. Commercial real estate loans decreased $333,000 or 1.4% to $23.7 million at June 30, 2024 and commercial business loans decreased $285,000 or 5.8% to $4.6 million at June 30, 2024.
Feldman Financial Advisors, Inc.
Board of Directors
Monroe Federal Savings and Loan Association
July 18, 2024
Page 4
Table 3
Summary Income Statement Data
For the Years Ended March 31, 2023 and 2024
and the Three Months Ended June 30, 2023 and 2024
(Dollars in Thousands)
| Three Months Ended | Year Ended | |||||||||||||||
| June 30, | March 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Total interest income | $ | 1,489 | $ | 1,398 | $ | 5,692 | $ | 4,786 | ||||||||
| Total interest expense | 507 | 431 | 1,975 | 918 | ||||||||||||
| Net interest income | 982 | 967 | 3,717 | 3,868 | ||||||||||||
| Provision for (recovery of) credit losses | 32 | - | (144 | ) | 60 | |||||||||||
| Net interest income after provision | 950 | 967 | 3,861 | 3,808 | ||||||||||||
| Total non-interest income | 88 | 87 | 344 | 327 | ||||||||||||
| Total non-interest expense | 1,197 | 1,045 | 4,194 | 3,708 | ||||||||||||
| Income (loss) before income taxes | (159 | ) | 9 | 11 | 427 | |||||||||||
| Provision for income taxes (benefits) | (43 | ) | (11 | ) | (49 | ) | 39 | |||||||||
| Net income (loss) | $ | (116 | ) | $ | 20 | $ | 60 | $ | 388 | |||||||
Source: Monroe Federal Savings and Loan Association, financial statements.
Monroe Federal’s total deposits decreased by $12.8 million or 9.0% to $129.3 million at June 30, 2024 from $142.1 million at March 31, 2024. Core deposits decreased $8.9 million or 8.9% to $90.8 million at June 30, 2024 from $99.7 million at March 31, 2024. Certificates of deposit decreased $3.9 million or 9.2% to $38.5 million at June 30, 2024 from $42.4 million at March 31, 2024. The decrease in core deposits was due primarily to a $5.1 million decrease in the deposit account held by a significant commercial customer whose account balances tend to fluctuate routinely in the ordinary course of business. The decrease in certificates of deposit was due mainly to outflows in higher-rate deposit accounts as management elected not to compete on interest rates for these accounts during the quarter.
The Association’s borrowings from the Federal Home Loan Bank (“FHLB”) totaled $7.6 million at June 30, 2024, representing an increase of $4.6 million from the $3.0 million outstanding balance at March 31, 2024. The additional borrowings were obtained primarily to fund deposit outflows during the period. These new FHLB advances totaling $4.6 million are scheduled to mature within three months from June 30, 2024.
Feldman Financial Advisors, Inc.
Board of Directors
Monroe Federal Savings and Loan Association
July 18, 2024
Page 5
Table 4
Selected Financial Ratios and Other Data
As of or For the Years Ended March 31, 2023 and 2024
And As of or For the Three Months Ended June 30, 2023 and 2024
| As of or For the | As of or For the | |||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| June 30, | March 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Performance Ratios | ||||||||||||||||
| Return on average assets | -0.31 | % | 0.05 | % | 0.04 | % | 0.27 | % | ||||||||
| Return on average equity | -5.38 | % | 0.94 | % | 0.73 | % | 4.47 | % | ||||||||
| Net interest rate spread (1) | 2.56 | % | 2.49 | % | 2.39 | % | 2.67 | % | ||||||||
| Net interest margin (2) | 2.71 | % | 2.62 | % | 2.54 | % | 2.75 | % | ||||||||
| Non-interest expense to average assets | 3.16 | % | 2.72 | % | 2.76 | % | 2.55 | % | ||||||||
| Efficiency ratio (3) | 111.87 | % | 99.15 | % | 103.28 | % | 88.39 | % | ||||||||
| Capital Ratios | ||||||||||||||||
| Average equity to average assets | 5.70 | % | 5.52 | % | 5.38 | % | 5.97 | % | ||||||||
| Tier 1 capital to average assets | 8.54 | % | 8.52 | % | 8.67 | % | 8.91 | % | ||||||||
| Tier 1 capital to risk-weighed assets | 13.37 | % | 12.89 | % | 14.23 | % | NA | |||||||||
| Common equity tier 1 capital to risk-weighted assets | 13.37 | % | 12.89 | % | 14.23 | % | NA | |||||||||
| Total capital to risk-weighted assets | 14.20 | % | 13.67 | % | 14.99 | % | NA | |||||||||
| Asset Quality Ratios | ||||||||||||||||
| Non-performing loans to total loans | 0.03 | % | 0.81 | % | 0.00 | % | 0.58 | % | ||||||||
| Non-performing assets to total assets | 0.02 | % | 0.60 | % | 0.00 | % | 0.42 | % | ||||||||
| Allowance for credit losses to total loans | 0.79 | % | 0.80 | % | 0.79 | % | 0.59 | % | ||||||||
| Allowance for credit losses to non-performing loans | 2959.45 | % | 99.05 | % | NM | 100.94 | % | |||||||||
| Net (charge-offs) recoveries to average loans | 0.00 | % | 0.00 | % | 0.05 | % | 0.04 | % | ||||||||
| Other Data | ||||||||||||||||
| Number of offices | 4 | 4 | 4 | 4 | ||||||||||||
| Number of full-time employees | 24 | 22 | 23 | 22 | ||||||||||||
| Number of part-time employees | 5 | 7 | 7 | 7 | ||||||||||||
(1) Difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(2) Net interest income as a percentage of average interest-earning assets.
(3) Non-interest expense divided by the sum of net interest income and non-interest income.
Source: Monroe Federal Savings and Loan Association.
FELDMAN FINANCIAL ADVISORS, INC.
Board of Directors
Monroe Federal Savings and Loan Association
July 18, 2024
Page 6
Monroe Federal reported a net loss for the three months ended June 30, 2024 of $116,000, a decrease of $136,000 compared to net income of $20,000 for the three months ended June 30, 2023. The decrease in net income was primarily due to a $151,000 increase in non-interest expenses and a $32,000 increase in the provision for credit losses, which were offset partially by a $15,000 increase in net interest income and a $31,000 increase in the income tax benefit. The Association’s annualized return on average assets (“ROA”) declined from 0.05% in the June 2023 quarter to -0.31% for the June 2024 quarter.
Net interest income increased by $15,000 or 1.6% to $982,000 for the quarter ended June 30, 2024, compared to $967,000 for the quarter ended June 30, 2023. Total interest income increased by $91,000, while total interest expense declined by $76,000. The increase in net interest income reflected an increase in the net interest rate spread to 2.56% for the quarter ended June 30, 2024 from 2.49% for the quarter ended June 30, 2023, while the balance of average net interest-earning assets decreased $486,000 period-to-period. The net interest margin increased to 2.71% for the quarter ended June 30, 2024 from 2.62% for the quarter ended June 30, 2023.
The provision for credit losses totaled $32,000 for the three months ended June 30, 2024, compared to no provision recorded for the three months ended June 30, 2023. The allowance for credit losses on loans was $871,000 at June 30, 2024, an increase of $16,000 over the $855,000 amount at March 31, 2024. The allowance for credit losses on loans represented 0.79% of total loans at both March 31, 2024 and June 30, 2024. The allowance for credit losses on off-balance sheet commitments was $74,000 at June 30, 2024, an increase of $18,000 over the $56,000 amount at March 31, 2024. The Association’s non-performing loans totaled $29,000, or 0.03% of total loans, at June 30, 2024, compared to non-performing loans of $915,000 at June 30, 2023 and zero at March 31, 2024.
Non-interest income amounted to $88,000 for the three months ended June 30, 2024, an increase of $1,000 or 1.6% from $87,000 for the three months ended June 30, 2023. The increase was attributable primarily to a $3,000 increase in the cash surrender value of life insurance and a $2,000 increase in service fees on deposits, which were offset partially by a $4,000 decrease in other income, which was due primarily to recoveries on a check fraud loss in the June 2023 quarter. The annualized ratio of non-interest income to average assets was equal to 0.23% in the June 2023 and June 2024 quarters.
Non-interest expense increased by $151,000 or 14.5% to $1.2 million for the three months ended June 30, 2024, compared to $1.0 million for the three months ended June 30, 2023. The increase in non-interest expense was due largely to a $131,000 increase in professional services and a $27,000 increase in salaries and employee benefits. The increase in professional services expense was due primarily to an increase in audit fees as the Association’s financial statements were reaudited in connection with the planned Conversion. The increase in salaries and employee benefits was due primarily to increased staffing related to the Association’s new branch office and normal merit increases. The annualized ratio of non-interest income to average assets increased from 2.72% in the June 2023 quarter to 3.16% for the June 2024 quarter.
FELDMAN FINANCIAL ADVISORS, INC.
Board of Directors
Monroe Federal Savings and Loan Association
July 18, 2024
Page 7
Comparative Group: Recent Financial Comparisons
Exhibits 3 through 7 summarize recent financial comparisons of Monroe Federal with the public company Comparative Group for the last twelve months (“LTM”) ended March 31, 2024, the latest period of operating results available for the Comparative Group. These financial comparisons were discussed in the original Appraisal and remain applicable to our analysis. For the LTM ended March 31, 2024, Monroe Federal’s ROA was 0.04% as compared to the Comparative Group’s median ROA of -0.25%. For the LTM ended June 30, 2024, Monroe Federal’s ROA declined to -0.05% as a result of the net loss incurred for the June 2024 quarter. None of the members of the Comparative Group have yet to report operating results for the June 2024 quarter.
As was discussed in the original Appraisal, the Association’s profitability was characterized by a lower net interest margin, a lower operating expense ratio, and an unfavorably high efficiency ratio. Monroe Federal’s lower net interest margin was attributable in part to its lower equity capital ratio, which necessitates a higher level of asset funding from interest-bearing liabilities. The Association’s 5.51% ratio of total equity to total assets was below the median of 11.89% for the Comparative Group. As noted earlier, the Association’s equity ratio increased moderately to 5.65% of total assets at June 30, 2024 due to a reduction in total assets. The Association’s asset quality was similar to the Comparative Group overall.
Comparative Group: Recent Stock Price Performance
Since our original Appraisal as of May 24, 2024, market prices of bank and thrift stocks have performed with mixed results. Shares in the biggest banks have vastly outperformed smaller banks and done better than stocks overall during the past year, an outcome that analysts attribute to factors such as their scale, diverse revenue streams that are being supported by strength in capital markets, and perceived safety. The S&P 500 Stock Index and Dow Jones Industrial Average each recorded new all-time closing highs on July 16, 2024 before retreating in the next few days, and financial stocks were at the forefront of the rally.
The recent bounce in bank and thrift stocks was attributable to rising sentiment that the Federal Reserve is inching closer to reducing interest rates. Most market analysts believe that an easing of monetary policy after two years of tightening would come as a great relief for regional banks that have been struggling with the impact of high rates on their cost of funds, resulting profits, and their borrowers.
Exhibit 8 summarizes the net change of the Comparative Group’s stock prices and selected market indexes between May 24, 2024 and July 18, 2024. The S&P U.S. Broad Market Index (“BMI”) for all banks and thrifts increased by 7.1% over this interim period of eight weeks, outperforming the 4.5% advancement of the S&P 500 stock index. The NASDAQ Bank Index increased by 12.7% over this period and the S&P Midwest Banks Index increased by 10.4%.
FELDMAN FINANCIAL ADVISORS, INC.
Board of Directors
Monroe Federal Savings and Loan Association
July 18, 2024
Page 8
Overall, the Comparative Group displayed less robust performance in stock price movement over the past eight weeks with an overall change reflecting a slight median increase of 0.6% and an average increase of 4.1%. Most of the Comparative Group companies experienced minimal net change in stock prices over this period. The median price-to-book value (“P/B”) ratio for the Comparative Group increased moderately from 69.8% at May 24, 2024 to 72.7% at July 18, 2024. The median price-to-tangible book value (“P/TB”) ratio for the Comparative Group increased slightly from 72.8% at May 24, 2024 to 73.5% at July 18, 2024. The median price-to-earnings (“P/E”) ratio based on LTM core earnings for the Comparative Group was relatively unchanged at 24.0x as of May 24, 2024 and 23.8x as of July 18, 2024.
Valuation Review and Analysis
Since our original Appraisal, there has been no significant change in the Association’s financial condition. The Association reported a small profit of $60,000 for its fiscal year ended March 31, 2024. The operating results for the recent quarter ended June 30, 2024 indicated a small loss of $116,000. Although the Association’s net interest margin expanded from 2.62% in the June 2023 quarter to 2.71% in the June 2024 quarter, the improvement was offset by increases in operating expenses and the provision for credit losses. The Association’s total equity declined by $226,000 from $8.6 million at March 31, 2024 to $8.3 million at June 30, 2024. However, the equity ratio increased from 5.51% at March 31, 2024 to 5.65% at June 30, 2024 due to asset shrinkage.
Market conditions for bank and thrift stocks improved firmly as evidenced by the advances posted by the various bank stock indexes. However, the Comparative Group’s stock price movement was more lethargic as reflected by a median gain of 0.6% between May 24, 2024 and July 18, 2024. The Comparative Group’s median P/B ratio increased by 4.1% from 69.8% to 72.7% and the median P/TB ratio increased marginally by 1.0% from 72.8% to 73.5%. In our original Appraisal, we concluded that the Association’s pro forma market value should be discounted to the Comparative Group’s trading ratios due to factors related to financial condition, liquidity of the issue, and the new issue discount for a previously untraded stock security. As noted above, the Association posted a net operating loss for the recent June 2024 quarter.
We believe that Monroe Federal’s estimated pro forma market value should continue to reflect a discount to the Comparative Group as a result of the aforementioned factors. As there was no material change in the Comparative Group’s overall stock price levels, we also believe that no change in the Association’s pro forma market value is warranted. Therefore, we are reaffirming the pro forma midpoint value of $6.0 million. Based on the pro forma midpoint value of $6.0 million, the Association’s pro forma P/B and P/TB ratios are both equal to 47.8%. In comparison, the median P/B and P/TB ratios of the Comparative Group were positioned higher at 72.7% and 73.5%, respectively, based on market price data as of July 18, 2024.
FELDMAN FINANCIAL ADVISORS, INC.
Board of Directors
Monroe Federal Savings and Loan Association
July 18, 2024
Page 9
Table 5 summarizes the relative differences between the Association’s pro forma valuation ratios and the Comparative Group’s median ratios. As illustrated, the differential levels observed in the original Appraisal are similar to those evident in the current Appraisal. The Association’s pro forma midpoint P/B and P/TB ratios of 47.8% reflect a discount of 34.3% to the Comparative Group’s median P/B ratio of 72.7% and a discount of 35.0% to the Comparative Group’s median P/TB ratio of 73.5%. The Association’s pro forma minimum P/B and P/TB ratios of 43.4% reflect discounts of 34.3% and 35.0% to the Comparative Group median P/B and P/TB ratios of 72.7% and 73.5%, respectively. The Association’s pro forma maximum P/B and P/TB ratios of 51.6% reflect discounts of 29.0% and 29.8% to the Comparative Group median P/B and P/TB ratios of 72.7% and 73.5%, respectively.
Table 5
Comparative Market
Valuation Ratios
at the Pro Forma Midpoint Value
(Dollars in Thousands)
| Original Appraisal | Appraisal Update | |||||||||||||||||||||||
| Monroe Federal | Monroe Federal | |||||||||||||||||||||||
| As of May 24, 2024 | As of July 18, 2024 | |||||||||||||||||||||||
| Pro Forma | Comp. | Difference | Pro Forma | Comp. | Difference | |||||||||||||||||||
| Midpoint | Group | vs. Comp. | Midpoint | Group | vs. Comp. | |||||||||||||||||||
| $6,000 | Median | Group | $6,000 | Median | Group | |||||||||||||||||||
| Price / Book Ratio | 47.76 | % | 69.80 | % | -31.6 | % | 47.76 | % | 72.67 | % | -34.3 | % | ||||||||||||
| Price / Tangible Book Ratio | 47.76 | % | 72.77 | % | -34.4 | % | 47.76 | % | 73.50 | % | -35.0 | % | ||||||||||||
| Price / Core EPS Ratio | 55.56 | x | 39.19 | x | 41.8 | % | 55.56 | x | 40.01 | x | 38.9 | % | ||||||||||||
Valuation Conclusion
It is our opinion that, as of July 18, 2024, the estimated pro forma market value of the Association was within a Valuation Range of $5,100,000 to $6,900,000 with a midpoint of $6,000,000. Pursuant to applicable appraisal guidelines, the Valuation Range was based upon a decrease of 15% decrease from the midpoint value to determine the minimum value and an increase of 15% from the midpoint value to establish the maximum value. Assuming an additional increase of 15% above the maximum value would result in an adjusted maximum of $7,935,000. The pro forma midpoint value of $6.0 million is unchanged from our original Appraisal as of May 24, 2024. Based on an initial offering price of $10.00 per share, the number of shares to be sold in the Stock Offering is as follows: 510,000 at the minimum, 600,000 at the midpoint, 690,000 at the maximum, and 793,500 at the adjusted maximum.
FELDMAN FINANCIAL ADVISORS, INC.
Board of Directors
Monroe Federal Savings and Loan Association
July 18, 2024
Page 10
Exhibit 9 compares the Association’s pro forma market valuation ratios to those of the Comparative Group. Exhibit 10 displays the assumptions utilized in calculating the pro forma financial consequences of the stock offering. Exhibit 11 displays pro forma financial data at the minimum, midpoint, maximum, and adjusted maximum levels of the Valuation Range. Exhibit 12 provides more detailed data and calculations at the pro forma midpoint level of the Valuation Range. Exhibit 13 computes the percentage differences of the Association’s pro forma valuation ratios with the averages and medians reported by the Comparative Group. Exhibit 14 provides supporting data on the financial ratios and trading market valuation ratios for all publicly traded thrift institutions.
Sincerely,
Feldman Financial Advisors, Inc.
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| By: | Trent R. Feldman | |
| President | ||
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| By: | Peter W. L. Williams | |
| Principal | ||
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 1
Balance Sheets
Monroe Federal Savings and Loan Association
As of March 31, 2023 and 2024
| March 31, | ||||||||
| 2024 | 2023 | |||||||
| Assets | ||||||||
| Cash and due from banks | $ | 2,981,089 | $ | 1,237,490 | ||||
| Interest-bearing deposits in other financial institutions | 7,529,609 | 1,690,298 | ||||||
| Federal funds sold | 107,000 | - | ||||||
| Cash and cash equivalents | 10,617,698 | 2,927,788 | ||||||
| Investment securities available for sale | 25,181,361 | 28,079,300 | ||||||
| Restricted stock | 515,000 | 809,100 | ||||||
| Loans receivable | 108,724,627 | 109,294,667 | ||||||
| Allowance for credit losses | (855,455 | ) | (642,336 | ) | ||||
| Net loans | 107,869,172 | 108,652,331 | ||||||
| Premises and equipment, net | 5,339,998 | 5,476,482 | ||||||
| Bank-owned life insurance | 3,491,015 | 3,389,858 | ||||||
| Accrued interest receivable | 483,027 | 450,525 | ||||||
| Deferred federal income taxes | 1,300,750 | 1,287,628 | ||||||
| Other assets | 539,241 | 367,500 | ||||||
| Total Assets | $ | 155,337,262 | $ | 151,440,512 | ||||
| Liabilities and Equity | ||||||||
| Deposits: | ||||||||
| Demand | $ | 48,459,382 | $ | 37,160,910 | ||||
| Savings and money market | 51,227,399 | $ | 55,076,604 | |||||
| Time | 42,405,531 | 35,058,912 | ||||||
| Total Deposits | 142,092,312 | 127,296,426 | ||||||
| Federal funds purchased | - | 865,000 | ||||||
| Federal Home Loan Bank advances | 3,000,000 | 12,500,000 | ||||||
| Advances by borrowers for taxes and insurance | 329,730 | 307,068 | ||||||
| Directors plan liability | 762,416 | 735,610 | ||||||
| Accrued interest payable and other liabilities | 588,099 | 950,833 | ||||||
| Total Liabilities | 146,772,557 | 142,654,937 | ||||||
| Retained earnings | 12,917,702 | 13,143,241 | ||||||
| Accumulated other comprehensive loss | (4,352,997 | ) | (4,357,666 | ) | ||||
| Total Equity | 8,564,705 | 8,785,575 | ||||||
| Total Liabilities and Equity | $ | 155,337,262 | $ | 151,440,512 | ||||
Source: Monroe Federal Savings and Loan Association, audited financial statements.
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 2
Income Statements
Monroe Federal Savings and Loan Association
For the Years Ended March 31, 2023 and 2024
| Year Ended | ||||||||
| March 31, | ||||||||
| 2024 | 2023 | |||||||
| Total interest income | $ | 5,692,352 | $ | 4,786,040 | ||||
| Total interest expense | 1,974,982 | 917,638 | ||||||
| Net interest income | 3,717,370 | 3,868,402 | ||||||
| Provision for (recovery of) credit losses | (143,224 | ) | 60,000 | |||||
| Net interest income after provision | 3,860,594 | 3,808,402 | ||||||
| Service fees on deposits | 178,094 | 150,732 | ||||||
| Late charges and fees on loans | 9,041 | 19,273 | ||||||
| Loan servicing fees | 14,748 | 13,279 | ||||||
| Bank-owned life insurance | 101,157 | 93,219 | ||||||
| Other income | 41,245 | 50,605 | ||||||
| Total non-interest income | 344,285 | 327,108 | ||||||
| Salaries and employee benefits | 2,075,798 | 1,902,739 | ||||||
| Directors fees | 119,698 | 119,000 | ||||||
| Occupancy and equipment | 557,802 | 381,107 | ||||||
| Data processing fees | 531,255 | 470,518 | ||||||
| Franchise taxes | 58,626 | 100,142 | ||||||
| FDIC insurance premiums | 109,773 | 66,516 | ||||||
| Professional services | 183,893 | 195,312 | ||||||
| Advertising | 93,910 | 55,573 | ||||||
| Other expense | 463,173 | 417,235 | ||||||
| Total non-interest expense | 4,193,928 | 3,708,142 | ||||||
| Income before income taxes | 10,951 | 427,368 | ||||||
| Provision for income taxes (benefits) | (48,818 | ) | 39,119 | |||||
| Net income (loss) | $ | 59,769 | $ | 388,249 | ||||
Source: Monroe Federal Savings and Loan Association, audited financial statements.
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 3
General Operating Characteristics
As of March 31, 2024
| Tang. | |||||||||||||||||||||||
| Total | Total | Total | Common | ||||||||||||||||||||
| No. of | IPO | Assets | Deposits | Equity | Equity | ||||||||||||||||||
| City/State | Ticker | Exchange | Offices | Date | ($000s) | ($000s) | ($000s) | ($000s) | |||||||||||||||
| Monroe Federal S&LA | Tipp City, Ohio | NA | NA | 4 | NA | 155,337 | 142,092 | 8,565 | 8,565 | ||||||||||||||
| Comparative Group Average | 488,033 | 368,035 | 66,908 | 66,395 | |||||||||||||||||||
| Comparative Group Median | 457,107 | 346,085 | 71,947 | 71,947 | |||||||||||||||||||
| Comparative Group | |||||||||||||||||||||||
| 1895 Bancorp of Wisconsin, Inc. | Greenfield, WI | BCOW | NASDAQ | 6 | 01/08/19 | 564,249 | 399,285 | 71,510 | 71,510 | ||||||||||||||
| Catalyst Bancorp, Inc. | Opelousas, LA | CLST | NASDAQ | 6 | 10/12/21 | 282,049 | 169,637 | 81,361 | 81,361 | ||||||||||||||
| Cullman Bancorp, Inc. | Cullman, AL | CULL | NASDAQ | 5 | 10/08/09 | 420,730 | 268,438 | 101,333 | 101,333 | ||||||||||||||
| Generations Bancorp NY, Inc. | Seneca Falls, NY | GBNY | NASDAQ | 10 | 07/10/06 | 410,831 | 343,780 | 36,905 | 36,268 | ||||||||||||||
| Home Federal Bancorp, Inc. | Shreveport, LA | HFBL | NASDAQ | 11 | 01/18/05 | 643,026 | 578,881 | 52,550 | 48,285 | ||||||||||||||
| IF Bancorp, Inc. | Watseka, IL | IROQ | NASDAQ | 8 | 07/07/11 | 904,989 | 681,788 | 72,384 | 72,384 | ||||||||||||||
| NSTS Bancorp, Inc. | Waukegan, IL | NSTS | NASDAQ | 3 | 01/18/22 | 265,564 | 178,047 | 76,962 | 76,962 | ||||||||||||||
| PB Bankshares, Inc. | Coatesville, PA | PBBK | NASDAQ | 6 | 07/14/21 | 450,434 | 348,389 | 46,769 | 46,769 | ||||||||||||||
| TC Bancshares, Inc. | Thomasville, GA | TCBC | NASDAQ | 6 | 07/20/21 | 474,676 | 380,288 | 77,839 | 77,839 | ||||||||||||||
| Texas Community Bancshares, Inc. | Mineola, TX | TCBS | NASDAQ | 8 | 07/14/21 | 463,780 | 331,815 | 51,471 | 51,240 | ||||||||||||||
Source: Monroe Federal Savings and Loan Association; S&P Global.
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 4
General Financial Performance Ratios
As of or For the Last Twelve Months Ended March 31, 2024
| 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) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | ||||||||||||||||||||||
| Monroe Federal S&LA | 155,337 | 142,092 | 5.51 | 5.51 | 2.54 | 103.28 | 0.04 | 0.72 | 0.04 | 0.72 | |||||||||||||||||||||
| Comparative Group Average | 488,033 | 368,035 | 15.76 | 15.68 | 2.81 | 94.09 | (0.33 | ) | (1.23 | ) | 0.03 | 0.77 | |||||||||||||||||||
| Comparative Group Median | 457,107 | 346,085 | 11.89 | 11.86 | 2.78 | 90.69 | (0.25 | ) | (2.51 | ) | 0.19 | 1.55 | |||||||||||||||||||
| All Public Thrift Average | 5,855,098 | 4,154,118 | 13.35 | 12.59 | 2.99 | 80.26 | 0.24 | 2.19 | 0.51 | 4.40 | |||||||||||||||||||||
| All Public Thrift Median | 1,590,144 | 1,215,787 | 11.96 | 11.19 | 2.83 | 76.45 | 0.39 | 2.84 | 0.47 | 3.78 | |||||||||||||||||||||
| Comparative Group | |||||||||||||||||||||||||||||||
| 1895 Bancorp of Wisconsin, Inc. | 564,249 | 399,285 | 12.67 | 12.67 | 2.30 | 110.86 | (1.23 | ) | (9.47 | ) | (0.59 | ) | (4.56 | ) | |||||||||||||||||
| Catalyst Bancorp, Inc. | 282,049 | 169,637 | 28.85 | 28.85 | 3.08 | 91.82 | (1.53 | ) | (4.97 | ) | 0.16 | 0.51 | |||||||||||||||||||
| Cullman Bancorp, Inc. | 420,730 | 268,438 | 24.09 | 24.09 | 3.77 | 71.13 | 0.88 | 3.61 | 0.88 | 3.61 | |||||||||||||||||||||
| Generations Bancorp NY, Inc. | 410,831 | 343,780 | 8.98 | 8.84 | 2.19 | 118.16 | (0.48 | ) | (5.31 | ) | (0.53 | ) | (5.87 | ) | |||||||||||||||||
| Home Federal Bancorp, Inc. | 643,026 | 578,881 | 8.17 | 7.56 | 3.20 | 73.92 | 0.64 | 8.23 | 0.68 | 8.75 | |||||||||||||||||||||
| IF Bancorp, Inc. | 904,989 | 681,788 | 8.00 | 8.00 | 2.13 | 89.56 | 0.22 | 2.76 | 0.22 | 2.76 | |||||||||||||||||||||
| NSTS Bancorp, Inc. | 265,564 | 178,047 | 28.98 | 28.98 | 2.65 | 119.01 | (1.70 | ) | (5.55 | ) | (1.15 | ) | (3.75 | ) | |||||||||||||||||
| PB Bankshares, Inc. | 450,434 | 348,389 | 10.38 | 10.38 | 2.85 | 78.34 | 0.43 | 3.74 | 0.44 | 3.78 | |||||||||||||||||||||
| TC Bancshares, Inc. | 474,676 | 380,288 | 16.40 | 16.40 | 3.21 | 98.62 | (0.01 | ) | (0.05 | ) | (0.01 | ) | (0.05 | ) | |||||||||||||||||
| Texas Community Bancshares, Inc. | 463,780 | 331,815 | 11.10 | 11.05 | 2.70 | 89.51 | (0.55 | ) | (5.33 | ) | 0.27 | 2.59 | |||||||||||||||||||
Source: Monroe Federal Savings and Loan Association; S&P Global.
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 5
Income and Expense Analysis
For the Last Twelve Months Ended March 31, 2024
| As a Percent of Average Assets | |||||||||||||||||||||||||||||||
| Net | Other | Gains & | Prov. | Gen. & | Intang. | Pre-tax | |||||||||||||||||||||||||
| Interest | Interest | Interest | Oper. | Non-rec. | Credit | Admin. | Amort. | Non-rec. | Core | ||||||||||||||||||||||
| Income | Expense | Income | Income | Income | Losses | Expense | Expense | Expense | Earnings | ||||||||||||||||||||||
| Monroe Federal S&LA | 3.74 | 1.30 | 2.45 | 0.23 | 0.00 | (0.09 | ) | 2.76 | 0.00 | 0.00 | 0.01 | ||||||||||||||||||||
| Comparative Group Average | 4.39 | 1.73 | 2.66 | 0.38 | (0.41 | ) | 0.07 | 2.82 | 0.03 | 0.03 | 0.15 | ||||||||||||||||||||
| Comparative Group Median | 4.54 | 1.84 | 2.68 | 0.42 | (0.00 | ) | 0.05 | 2.84 | 0.00 | 0.00 | 0.21 | ||||||||||||||||||||
| All Public Thrift Average | 4.65 | 1.91 | 2.83 | 0.49 | (0.14 | ) | 0.07 | 2.57 | 0.08 | 0.05 | 0.68 | ||||||||||||||||||||
| All Public Thrift Median | 4.61 | 1.85 | 2.73 | 0.34 | 0.00 | 0.04 | 2.48 | 0.01 | 0.00 | 0.54 | |||||||||||||||||||||
| Comparative Group | |||||||||||||||||||||||||||||||
| 1895 Bancorp of Wisconsin, Inc. | 4.04 | 1.83 | 2.21 | 0.44 | (0.80 | ) | 0.04 | 2.93 | 0.00 | 0.00 | (0.33 | ) | |||||||||||||||||||
| Catalyst Bancorp, Inc. | 3.90 | 0.96 | 2.94 | 0.48 | (1.91 | ) | 0.05 | 3.17 | 0.00 | 0.23 | 0.20 | ||||||||||||||||||||
| Cullman Bancorp, Inc. | 4.77 | 1.22 | 3.55 | 0.42 | 0.00 | 0.05 | 2.82 | 0.00 | 0.00 | 1.09 | |||||||||||||||||||||
| Generations Bancorp NY, Inc. | 4.19 | 2.19 | 2.00 | 0.42 | 0.28 | 0.17 | 2.86 | 0.21 | 0.00 | (0.61 | ) | ||||||||||||||||||||
| Home Federal Bancorp, Inc. | 4.80 | 1.77 | 3.03 | 0.30 | 0.00 | 0.04 | 2.52 | 0.05 | 0.00 | 0.76 | |||||||||||||||||||||
| IF Bancorp, Inc. | 4.47 | 2.42 | 2.05 | 0.48 | 0.00 | 0.04 | 2.27 | 0.00 | 0.00 | 0.22 | |||||||||||||||||||||
| NSTS Bancorp, Inc. | 3.22 | 0.77 | 2.45 | 0.31 | (0.70 | ) | (0.03 | ) | 3.29 | 0.00 | 0.00 | (0.49 | ) | ||||||||||||||||||
| PB Bankshares, Inc. | 4.98 | 2.21 | 2.76 | 0.20 | (0.00 | ) | 0.27 | 2.32 | 0.00 | 0.00 | 0.38 | ||||||||||||||||||||
| TC Bancshares, Inc. | 4.90 | 1.85 | 3.05 | 0.24 | 0.00 | 0.00 | 3.25 | 0.00 | 0.00 | 0.03 | |||||||||||||||||||||
| Texas Community Bancshares, Inc. | 4.61 | 2.02 | 2.60 | 0.46 | (0.94 | ) | 0.08 | 2.72 | 0.03 | 0.06 | 0.26 | ||||||||||||||||||||
Source: Monroe Federal Savings and Loan Association; S&P Global.
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 6
Balance Sheet Composition
As of March 31, 2024
| As a Percent of Total Assets | |||||||||||||||||||||||||||||||
| Cash and | Net | Real Est. | Intang. | Other | Total | Borrowed | Other | Total | Total | ||||||||||||||||||||||
| Securities | Loans | Owned | Assets | Assets | Deposits | Funds | Liabs. | Liabs. | Equity | ||||||||||||||||||||||
| Monroe Federal S&LA | 23.38 | 69.44 | 0.00 | 0.00 | 7.18 | 91.47 | 1.93 | 1.08 | 94.49 | 5.51 | |||||||||||||||||||||
| Comparative Group Average | 24.90 | 68.98 | 0.02 | 0.09 | 6.02 | 73.98 | 9.10 | 1.16 | 84.24 | 15.76 | |||||||||||||||||||||
| Comparative Group Median | 23.35 | 72.54 | 0.00 | 0.00 | 5.43 | 73.44 | 10.56 | 1.00 | 88.11 | 11.89 | |||||||||||||||||||||
| All Public Thrift Average | 20.39 | 74.08 | 0.06 | 0.77 | 4.94 | 73.60 | 11.82 | 1.34 | 86.81 | 13.35 | |||||||||||||||||||||
| All Public Thrift Median | 16.96 | 76.28 | 0.00 | 0.05 | 4.87 | 75.15 | 10.43 | 1.21 | 88.06 | 11.96 | |||||||||||||||||||||
| Comparative Group | |||||||||||||||||||||||||||||||
| 1895 Bancorp of Wisconsin, Inc. | 24.44 | 69.87 | 0.00 | 0.00 | 5.68 | 70.76 | 14.18 | 2.38 | 87.33 | 12.67 | |||||||||||||||||||||
| Catalyst Bancorp, Inc. | 41.45 | 50.14 | 0.08 | 0.00 | 8.33 | 60.14 | 10.43 | 0.58 | 71.15 | 28.85 | |||||||||||||||||||||
| Cullman Bancorp, Inc. | 11.49 | 81.62 | 0.00 | 0.00 | 6.89 | 63.80 | 10.70 | 1.42 | 75.91 | 24.09 | |||||||||||||||||||||
| Generations Bancorp NY, Inc. | 10.72 | 80.15 | 0.00 | 0.16 | 8.97 | 83.68 | 6.20 | 1.14 | 91.02 | 8.98 | |||||||||||||||||||||
| Home Federal Bancorp, Inc. | 16.82 | 77.94 | 0.00 | 0.66 | 4.58 | 90.02 | 1.46 | 0.35 | 91.83 | 8.17 | |||||||||||||||||||||
| IF Bancorp, Inc. | 24.03 | 71.09 | 0.00 | 0.00 | 4.88 | 75.34 | 15.41 | 1.25 | 92.00 | 8.00 | |||||||||||||||||||||
| NSTS Bancorp, Inc. | 44.70 | 47.87 | 0.00 | 0.00 | 7.43 | 67.04 | 1.88 | 2.09 | 71.02 | 28.98 | |||||||||||||||||||||
| PB Bankshares, Inc. | 22.67 | 73.99 | 0.00 | 0.00 | 3.33 | 77.35 | 11.47 | 0.81 | 89.62 | 10.38 | |||||||||||||||||||||
| TC Bancshares, Inc. | 15.72 | 79.41 | 0.00 | 0.00 | 4.87 | 80.12 | 2.75 | 0.73 | 83.60 | 16.40 | |||||||||||||||||||||
| Texas Community Bancshares, Inc. | 36.96 | 57.68 | 0.12 | 0.05 | 5.18 | 71.55 | 16.50 | 0.86 | 88.90 | 11.10 | |||||||||||||||||||||
Source: Monroe Federal Savings and Loan Association; S&P Global.
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 7
Growth Rates, Credit Risk, and Loan Composition
As of or For the Last Twelve Months Ended March 31, 2024
| Loan | Loan | Resid. | Other | Non- | |||||||||||||||||||||||||||
| Asset | Loan | Deposit | NPLs(1)/ | NPAs(1)/ | Loss | Loss | Real Est. | Real Est. | Real Est. | ||||||||||||||||||||||
| Growth | Growth | Growth | Total | Total | Allow./ | Allow./ | Loans(2)/ | Loans/ | Loans/ | ||||||||||||||||||||||
| Rate | Rate | Rate | Loans | Assets | NPLs(1) | Loans | Loans | Loans | Loans | ||||||||||||||||||||||
| (%) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | ||||||||||||||||||||||
| Monroe Federal S&LA | 2.57 | (0.72 | ) | 11.62 | 0.32 | 0.22 | 245.69 | 0.78 | 67.27 | 26.60 | 6.13 | ||||||||||||||||||||
| Comparative Group Average | 5.03 | 8.63 | 3.97 | 0.47 | 0.35 | 269.62 | 1.08 | 45.96 | 32.43 | 21.61 | |||||||||||||||||||||
| Comparative Group Median | 3.94 | 7.72 | 2.68 | 0.40 | 0.31 | 323.99 | 1.00 | 44.87 | 34.52 | 21.40 | |||||||||||||||||||||
| All Public Thrift Average | 5.16 | 8.03 | 3.94 | 0.50 | 0.43 | 250.50 | 1.04 | 34.25 | 43.42 | 22.33 | |||||||||||||||||||||
| All Public Thrift Median | 3.71 | 6.05 | 1.68 | 0.40 | 0.33 | 228.03 | 0.98 | 30.39 | 51.09 | 18.52 | |||||||||||||||||||||
| Comparative Group | |||||||||||||||||||||||||||||||
| 1895 Bancorp of Wisconsin, Inc. | 2.30 | 7.52 | 7.34 | 0.37 | 0.26 | 336.29 | 0.92 | 24.95 | 58.89 | 16.16 | |||||||||||||||||||||
| Catalyst Bancorp, Inc. | 2.24 | 8.27 | (5.61 | ) | 1.01 | 0.60 | 142.33 | 1.44 | 55.50 | 16.86 | 27.64 | ||||||||||||||||||||
| Cullman Bancorp, Inc. | 0.77 | 3.19 | (2.90 | ) | 0.61 | 0.50 | 140.24 | 0.85 | 51.65 | 31.21 | 17.14 | ||||||||||||||||||||
| Generations Bancorp NY, Inc. | 5.56 | 6.78 | 2.00 | 0.99 | 0.80 | 92.42 | 0.92 | 50.91 | 4.49 | 44.61 | |||||||||||||||||||||
| Home Federal Bancorp, Inc. | (6.26 | ) | 2.79 | (5.78 | ) | 0.29 | 0.23 | 332.45 | 0.97 | 36.90 | 37.83 | 25.27 | |||||||||||||||||||
| IF Bancorp, Inc. | 7.36 | 11.20 | (1.41 | ) | 0.00 | 0.00 | NM | 1.19 | 26.48 | 50.20 | 23.32 | ||||||||||||||||||||
| NSTS Bancorp, Inc. | 2.31 | 22.77 | 3.36 | 0.18 | 0.09 | 496.62 | 0.92 | 89.03 | 5.21 | 5.76 | |||||||||||||||||||||
| PB Bankshares, Inc. | 14.60 | 7.93 | 17.92 | 0.40 | 0.30 | 334.21 | 1.32 | 28.84 | 57.78 | 13.38 | |||||||||||||||||||||
| TC Bancshares, Inc. | 10.46 | 12.93 | 13.21 | 0.40 | 0.32 | 323.99 | 1.28 | 38.84 | 39.35 | 21.81 | |||||||||||||||||||||
| Texas Community Bancshares, Inc. | 10.95 | 2.94 | 11.54 | 0.46 | 0.39 | 228.03 | 1.04 | 56.56 | 22.45 | 20.99 | |||||||||||||||||||||
(1) Includes accruing troubled debt restructurings.
(2) Includes home equity and second mortgage loans.
Source: Monroe Federal Savings and Loan Association; S&P Global.
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 8
Comparative Group Market Price and Ratio Change
Market Price Data as of May 24, 2024 and July 18, 2024
| 5/24/24 | 7/18/24 | 5/24/24 | 7/18/24 | 5/24/24 | 7/18/24 | 5/24/24 | 7/18/24 | |||||||||||||||||||||||||||||||||||||||||
| Closing | Closing | Price/ | Price/ | Price/ | Price/ | Price/ | Price/ | |||||||||||||||||||||||||||||||||||||||||
| Stock | Stock | Core | Core | Book | Book | Tang. | Tang. | |||||||||||||||||||||||||||||||||||||||||
| Price | Price | Change | EPS | EPS | Change | Value | Value | Change | Book | Book | Change | |||||||||||||||||||||||||||||||||||||
| Company | ($) | ($) | (%) | (x) | (x) | (%) | (%) | (%) | (%) | (%) | (%) | (%) | ||||||||||||||||||||||||||||||||||||
| Comparative Group Median | NA | NA | 0.6 | 23.95 | 23.79 | (0.7 | ) | 69.80 | 72.67 | 4.1 | 72.77 | 73.50 | 1.0 | |||||||||||||||||||||||||||||||||||
| Comparative Group Average | NA | NA | 4.1 | 39.19 | 40.01 | 2.1 | 71.20 | 73.94 | 3.9 | 71.95 | 74.69 | 3.8 | ||||||||||||||||||||||||||||||||||||
| Comparative Group | ||||||||||||||||||||||||||||||||||||||||||||||||
| 1895 Bancorp of Wisconsin, Inc. | 7.35 | 8.76 | 19.2 | NM | NM | NM | 61.79 | 73.65 | 19.2 | 61.79 | 73.65 | 19.2 | ||||||||||||||||||||||||||||||||||||
| Catalyst Bancorp, Inc. | 11.69 | 11.88 | 1.6 | 125.33 | 127.37 | 1.6 | 65.49 | 66.56 | 1.6 | 65.49 | 66.56 | 1.6 | ||||||||||||||||||||||||||||||||||||
| Cullman Bancorp, Inc. | 10.22 | 10.00 | (2.2 | ) | 20.45 | 20.00 | (2.2 | ) | 73.30 | 71.70 | (2.2 | ) | 73.30 | 71.70 | (2.2 | ) | ||||||||||||||||||||||||||||||||
| Generations Bancorp NY, Inc. | 10.50 | 10.50 | 0.0 | NM | NM | NM | 63.78 | 63.76 | (0.0 | ) | 64.90 | 64.88 | (0.0 | ) | ||||||||||||||||||||||||||||||||||
| Home Federal Bancorp, Inc. | 11.25 | 11.26 | 0.1 | 7.78 | 7.79 | 0.1 | 67.33 | 67.39 | 0.1 | 73.28 | 73.35 | 0.1 | ||||||||||||||||||||||||||||||||||||
| IF Bancorp, Inc. | 16.75 | 16.75 | 0.0 | 27.46 | 27.46 | 0.0 | 77.59 | 77.59 | 0.0 | 77.59 | 77.59 | 0.0 | ||||||||||||||||||||||||||||||||||||
| NSTS Bancorp, Inc. | 9.55 | 10.05 | 5.2 | NM | NM | NM | 65.96 | 69.41 | 5.2 | 65.96 | 69.41 | 5.2 | ||||||||||||||||||||||||||||||||||||
| PB Bankshares, Inc. | 12.85 | 15.02 | 16.9 | 17.22 | 20.13 | 16.9 | 72.26 | 84.46 | 16.9 | 72.26 | 84.46 | 16.9 | ||||||||||||||||||||||||||||||||||||
| TC Bancshares, Inc. | 13.90 | 13.81 | (0.6 | ) | NM | NM | NM | 77.16 | 76.66 | (0.6 | ) | 77.16 | 76.66 | (0.6 | ) | |||||||||||||||||||||||||||||||||
| Texas Community Bancshares, Inc. | 14.10 | 14.25 | 1.1 | 36.90 | 37.29 | 1.1 | 87.33 | 88.26 | 1.1 | 87.72 | 88.66 | 1.1 | ||||||||||||||||||||||||||||||||||||
| Index Values | ||||||||||||||||||||||||||||||||||||||||||||||||
| S&P 500 Stock Index | 5,307.7 | 5,544.5 | 4.5 | |||||||||||||||||||||||||||||||||||||||||||||
| S&P Broad Market Index Banks | 172.1 | 184.4 | 7.1 | |||||||||||||||||||||||||||||||||||||||||||||
| NASDAQ Bank Index | 3,700.5 | 4,169.2 | 12.7 | |||||||||||||||||||||||||||||||||||||||||||||
| S&P Midwest Banks Index | 600.6 | 663.1 | 10.4 | |||||||||||||||||||||||||||||||||||||||||||||
Source: S&P Global.
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 9
Comparative Pro Forma Market Valuation Analysis
Computed from Market Price Data as of July 18, 2024
| Current | 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) | (%) | (%) | (%) | (%) | (%) | (%) | ||||||||||||||||||||||||||||||
| Monroe Federal Bancorp, Inc.(1) | ||||||||||||||||||||||||||||||||||||||||
| Pro Forma Minimum | 10.00 | 5.1 | 55.56 | 55.56 | 43.38 | 43.38 | 3.22 | 7.42 | 7.42 | 0.00 | ||||||||||||||||||||||||||||||
| Pro Forma Midpoint | 10.00 | 6.0 | 55.56 | 55.56 | 47.76 | 47.76 | 3.77 | 7.89 | 7.89 | 0.00 | ||||||||||||||||||||||||||||||
| Pro Forma Maximum | 10.00 | 6.9 | 58.82 | 58.82 | 51.60 | 51.60 | 4.31 | 8.35 | 8.35 | 0.00 | ||||||||||||||||||||||||||||||
| Pro Forma Adjusted Maximum | 10.00 | 7.9 | 58.82 | 58.82 | 55.46 | 55.46 | 4.93 | 8.88 | 8.88 | 0.00 | ||||||||||||||||||||||||||||||
| Comparative Group Average | NA | 46.6 | 19.01 | 40.01 | 73.94 | 74.69 | 11.45 | 15.76 | 15.68 | 0.99 | ||||||||||||||||||||||||||||||
| Comparative Group Median | NA | 49.0 | 20.15 | 23.79 | 72.67 | 73.50 | 9.56 | 11.89 | 11.86 | 0.36 | ||||||||||||||||||||||||||||||
| All Public Thrift Average(2) | NA | 508.4 | 17.70 | 15.97 | 83.38 | 92.51 | 10.19 | 13.35 | 12.59 | 1.62 | ||||||||||||||||||||||||||||||
| All Public Thrift Median(2) | NA | 143.2 | 14.05 | 13.20 | 76.99 | 80.88 | 9.47 | 11.96 | 11.19 | 1.06 | ||||||||||||||||||||||||||||||
| Comparative Group | ||||||||||||||||||||||||||||||||||||||||
| 1895 Bancorp of Wisconsin, Inc. | 8.76 | 48.7 | NM | NM | 73.65 | 73.65 | 9.33 | 12.67 | 12.67 | 0.00 | ||||||||||||||||||||||||||||||
| Catalyst Bancorp, Inc. | 11.88 | 53.6 | NM | 127.37 | 66.56 | 66.56 | 19.20 | 28.85 | 28.85 | 0.00 | ||||||||||||||||||||||||||||||
| Cullman Bancorp, Inc. | 10.00 | 69.6 | 20.00 | 20.00 | 71.70 | 71.70 | 17.27 | 24.09 | 24.09 | 1.20 | ||||||||||||||||||||||||||||||
| Generations Bancorp NY, Inc. | 10.50 | 24.4 | NM | NM | 63.76 | 64.88 | 5.73 | 8.98 | 8.84 | 0.00 | ||||||||||||||||||||||||||||||
| Home Federal Bancorp, Inc. | 11.26 | 34.0 | 8.28 | 7.79 | 67.39 | 73.35 | 5.51 | 8.17 | 7.56 | 4.44 | ||||||||||||||||||||||||||||||
| IF Bancorp, Inc. | 16.75 | 53.8 | 27.46 | 27.46 | 77.59 | 77.59 | 6.21 | 8.00 | 8.00 | 2.39 | ||||||||||||||||||||||||||||||
| NSTS Bancorp, Inc. | 10.05 | 49.3 | NM | NM | 69.41 | 69.41 | 20.12 | 28.98 | 28.98 | 0.00 | ||||||||||||||||||||||||||||||
| PB Bankshares, Inc. | 15.02 | 36.7 | 20.30 | 20.13 | 84.46 | 84.46 | 8.77 | 10.38 | 10.38 | 0.00 | ||||||||||||||||||||||||||||||
| TC Bancshares, Inc. | 13.81 | 53.7 | NM | NM | 76.66 | 76.66 | 12.57 | 16.40 | 16.40 | 0.73 | ||||||||||||||||||||||||||||||
| Texas Community Bancshares, Inc. | 14.25 | 42.3 | NM | 37.29 | 88.26 | 88.66 | 9.80 | 11.10 | 11.05 | 1.12 | ||||||||||||||||||||||||||||||
| (1) | Assumes Conversion is completed at an estimated pro forma market value of $5.1 million at the minimum, $6.0 million at the midpoint, $6.9 million at the maximum and $7.9 million at the adjusted maximum. |
| (2) | All public thrifts traded on a major exchange, excluding mutual holding companies and companies being acquired in announced merger transactions. |
Source: Monroe Federal Savings and Loan Association; S&P Global; Feldman Financial Advisors, Inc.
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 10
Pro Forma Assumptions for the Conversion Stock Offering
| 1. | The total amount of the net offering proceeds was fully invested at the beginning of the applicable period. |
| 2. | The net offering proceeds are invested to yield a return of 4.21%, which represented the yield on five-year U.S. Treasury securities at March 31, 2024. The effective income tax rate was assumed to be 21.0%, resulting in a net after-tax yield of 3.33%. |
| 3. | It is assumed that 7.0% of the total shares of common stock to be sold in the Conversion will be acquired by the Association’s employee stock ownership plan (“ESOP”). Pro forma adjustments have been made to earnings and equity to reflect the impact of the ESOP. The annual expense is estimated based on a 20-year loan to the ESOP from the Association. No re-investment is assumed on proceeds used to fund the ESOP. |
| 4. | It is assumed that that the Association’s restricted stock plan (“RSP”) will purchase in the open market a number of shares equal to 3.0% of the total shares sold in the Conversion. Also, it is assumed that these shares are acquired at the initial public offering price of $10.00 per share. 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 re-investment is assumed on proceeds used to fund the RSP. |
| 5. | It is assumed that an additional 10.0% of the total shares sold in the Stock Offering will be reserved for issuance by the Association’s stock option plan. The pro forma net income has been adjusted to reflect the expense associated with the granting of options at an assumed options value of $4.30 per option. It is further assumed that options for all shares reserved under the plan were granted to plan participants at the beginning of the period and 25.0% were non-qualified options for income tax purposes, the options would vest at a rate of 20.0% per year, and compensation expense will be recognized on a straight-line basis over the five-year vesting period |
| 6. | The fair value of stock options has been estimated at $4.30 per option using the Black-Scholes option pricing model with the following assumptions: a grant-date share price and option exercise price of $10.00; dividend yield of 0.00%; an expected option life of 10 years; a risk-free interest rate of 4.20%; and a volatility rate of 21.43% based on a selected banking stock index. |
| 7. | Total offering expenses are estimated at $1,400,000. |
| 8. | No effect has been given to withdrawals from deposit accounts for the purpose of purchasing common stock in the Stock Offering. |
| 9. | No effect has been given in the pro forma equity calculation for the assumed earnings on the net proceeds. |
FELDMAN FINANCIAL ADVISORS, INC.
| Exhibit 11 |
| Monroe Federal Savings and Loan Association |
| Pro Forma Conversion Valuation Range |
| Historical Financial Data as of March 31, 2024 |
| (Dollars in Thousands, Except Per Share Data) |
| Minimum | Midpoint | Maximum | Adj. Max. | |||||||||||||
| Shares sold in the offering | 510,000 | 600,000 | 690,000 | 793,500 | ||||||||||||
| Offering price | $ | 10.00 | $ | 10.00 | $ | 10.00 | $ | 10.00 | ||||||||
| Gross offering proceeds | $ | 5,100 | $ | 6,000 | $ | 6,900 | $ | 7,935 | ||||||||
| Less: estimated offering expenses | (1,400 | ) | (1,400 | ) | (1,400 | ) | (1,400 | ) | ||||||||
| Net offering proceeds | 3,700 | 4,600 | 5,500 | 6,535 | ||||||||||||
| Less: ESOP purchase | (357 | ) | (420 | ) | (483 | ) | (555 | ) | ||||||||
| Less: RSP purchase | (153 | ) | (180 | ) | (207 | ) | (238 | ) | ||||||||
| Net investable proceeds | $ | 3,190 | $ | 4,000 | $ | 4,810 | $ | 5,742 | ||||||||
| Net income - LTM ended 3/31/24 | $ | 60 | $ | 60 | $ | 60 | $ | 60 | ||||||||
| Pro forma income on net proceeds | 106 | 133 | 160 | 191 | ||||||||||||
| Pro forma ESOP adjustment | (14 | ) | (17 | ) | (19 | ) | (22 | ) | ||||||||
| Pro forma RSP adjustment | (24 | ) | (28 | ) | (33 | ) | (38 | ) | ||||||||
| Pro forma stock option adjustment | (42 | ) | (49 | ) | (56 | ) | (65 | ) | ||||||||
| Pro forma net income | $ | 86 | $ | 99 | $ | 112 | $ | 126 | ||||||||
| Pro forma earnings per share | $ | 0.18 | $ | 0.18 | $ | 0.17 | $ | 0.17 | ||||||||
| Core earnings - LTM ended 3/31/24 | $ | 60 | $ | 60 | $ | 60 | $ | 60 | ||||||||
| Pro forma income on net proceeds | 106 | 133 | 160 | 191 | ||||||||||||
| Pro forma ESOP adjustment | (14 | ) | (17 | ) | (19 | ) | (22 | ) | ||||||||
| Pro forma RSP adjustment | (24 | ) | (28 | ) | (33 | ) | (38 | ) | ||||||||
| Pro forma stock option adjustment | (42 | ) | (49 | ) | (56 | ) | (65 | ) | ||||||||
| Pro forma core earnings | $ | 86 | $ | 99 | $ | 112 | $ | 126 | ||||||||
| Pro forma core earnings per share | $ | 0.18 | $ | 0.18 | $ | 0.17 | $ | 0.17 | ||||||||
| Total equity - 3/31/24 | $ | 8,565 | $ | 8,565 | $ | 8,565 | $ | 8,565 | ||||||||
| Net offering proceeds | 3,700 | 4,600 | 5,500 | 6,535 | ||||||||||||
| Less: ESOP purchase | (357 | ) | (420 | ) | (483 | ) | (555 | ) | ||||||||
| Less: RSP purchase | (153 | ) | (180 | ) | (207 | ) | (238 | ) | ||||||||
| Pro forma total equity | $ | 11,755 | $ | 12,565 | $ | 13,375 | $ | 14,307 | ||||||||
| Pro forma book value | $ | 23.05 | $ | 20.94 | $ | 19.38 | $ | 18.03 | ||||||||
| Tangible equity - 3/31/24 | $ | 8,565 | $ | 8,565 | $ | 8,565 | $ | 8,565 | ||||||||
| Net offering proceeds | 3,700 | 4,600 | 5,500 | 6,535 | ||||||||||||
| Less: ESOP purchase | (357 | ) | (420 | ) | (483 | ) | (555 | ) | ||||||||
| Less: RSP purchase | (153 | ) | (180 | ) | (207 | ) | (238 | ) | ||||||||
| Pro forma tangible equity | $ | 11,755 | $ | 12,565 | $ | 13,375 | $ | 14,307 | ||||||||
| Pro forma tangible book value | $ | 23.05 | $ | 20.94 | $ | 19.38 | $ | 18.03 | ||||||||
| Total assets - 3/31/24 | $ | 155,337 | $ | 155,337 | $ | 155,337 | $ | 155,337 | ||||||||
| Net offering proceeds | 3,700 | 4,600 | 5,500 | 6,535 | ||||||||||||
| Less: ESOP purchase | (357 | ) | (420 | ) | (483 | ) | (555 | ) | ||||||||
| Less: RSP purchase | (153 | ) | (180 | ) | (207 | ) | (238 | ) | ||||||||
| Pro forma total assets | $ | 158,527 | $ | 159,337 | $ | 160,147 | $ | 161,079 | ||||||||
| Pro Forma Ratios: | ||||||||||||||||
| Price / Book Value | 43.38 | % | 47.76 | % | 51.60 | % | 55.46 | % | ||||||||
| Price / Tangible Book Value | 43.38 | % | 47.76 | % | 51.60 | % | 55.46 | % | ||||||||
| Price / LTM Earnings Per Share | 55.56 | x | 55.56 | x | 58.82 | x | 58.82 | x | ||||||||
| Price / Core Earnings Per Share | 55.56 | x | 55.56 | x | 58.82 | x | 58.82 | x | ||||||||
| Price / Total Assets | 3.22 | % | 3.77 | % | 4.31 | % | 4.93 | % | ||||||||
| Total Equity / Assets | 7.42 | % | 7.89 | % | 8.35 | % | 8.88 | % | ||||||||
| Tangible Equity / Assets | 7.42 | % | 7.89 | % | 8.35 | % | 8.88 | % | ||||||||
FELDMAN FINANCIAL ADVISORS, INC.
| Exhibit 12 |
| Pro Forma Conversion Analysis at the Midpoint Value |
| Monroe Federal Savings and Loan Association |
| Historical Financial Data as of March 31, 2024 |
| Valuation Parameters | Symbol | Data | ||||
| Net income -- LTM | Y | $ | 60,000 | |||
| Core earnings -- LTM | Y | 60,000 | ||||
| Net worth | B | 8,565,000 | ||||
| Tangible net worth | B | 8,565,000 | ||||
| Total assets | A | 155,337,000 | ||||
| Expenses in conversion | X | 1,400,000 | ||||
| Other proceeds not reinvested | O | 600,000 | ||||
| ESOP purchase | E | 420,000 | ||||
| ESOP expense (pre-tax) | F | 21,519 | ||||
| RSP purchase | M | 180,000 | ||||
| RSP expense (pre-tax) | N | 35,443 | ||||
| Stock option expense (pre-tax) | Q | 51,600 | ||||
| Option expense tax-deductible | D | 25.00 | % | |||
| Re-investment rate (after-tax) | R | 3.33 | % | |||
| Tax rate | T | 21.00 | % | |||
| Shares for EPS | S | 93.35 | % | |||
| Pro Forma Valuation Ratios at Midpoint Value | ||||||
| Price / LTM EPS | P/E | 55.56 | x | |||
| Price / Core EPS | P/E | 55.56 | x | |||
| Price / Book Value | P/B | 47.76 | % | |||
| Price / Tangible Book | P/TB | 47.76 | % | |||
| Price / Assets | P/A | 3.77 | % | |||
| Pro Forma Calculation at Midpoint Value | Based on | |||||
| V | = | (P/E / S)*((Y-R*(O+X)-(F+N)*(1-T)-(Q-Q*D*T))) | = | $6,000,000 | [LTM earnings] | |
| 1 - (P/E / S) * R | ||||||
| V | = | (P/E / S)*((Y-R*(O+X)-(F+N)*(1-T)-(Q-Q*D*T)) | = | $6,000,000 | [Core earnings] | |
| 1 - (P/E / S) * R | ||||||
| V | = | P/B * (B - X - E - M ) | = | $6,000,000 | [Book value] | |
| 1 - P/B | ||||||
| V | = | P/TB * (B - X - E - M ) | = | $6,000,000 | [Tangible book] | |
| 1 - P/TB | ||||||
| V | = | P/A * (A - X - E - M ) | = | $6,000,000 | [Total assets] | |
| 1 - P/A | ||||||
| Pro Forma | Valuation | |||||
| Valuation Range | Range | |||||
| Minimum | = | $6,000,000 | x | 0.8500 | = | $5,100,000 |
| Midpoint | = | $6,000,000 | x | 1.0000 | = | $6,000,000 |
| Maximum | = | $6,000,000 | x | 1.1500 | = | $6,900,000 |
| Adj. Max. | = | $6,900,000 | x | 1.1500 | = | $7,935,000 |
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 13
Comparative Valuation Ratio Analysis
Pro Forma Conversion Valuation
Computed from Market Price Data as of July 18, 2024
| Monroe | Comparative | All Public | ||||||||||||||||||||||
| Valuation | Federal | Group | Thrifts (1) | |||||||||||||||||||||
| Ratio | Symbol | Bancorp | Average | Median | Average | Median | ||||||||||||||||||
| Price / LTM EPS | P/E | 19.01 | 20.15 | 17.70 | 14.05 | |||||||||||||||||||
| Minimum | (x) | 55.56 | 192.3 | % | 175.7 | % | 213.9 | % | 295.4 | % | ||||||||||||||
| Midpoint | 55.56 | 192.3 | % | 175.7 | % | 213.9 | % | 295.4 | % | |||||||||||||||
| Maximum | 58.82 | 209.5 | % | 191.9 | % | 232.4 | % | 318.7 | % | |||||||||||||||
| Adjusted Maximum | 58.82 | 209.5 | % | 191.9 | % | 232.4 | % | 318.7 | % | |||||||||||||||
| Price / Core EPS | P/E | 40.01 | 23.79 | 15.97 | 13.20 | |||||||||||||||||||
| Minimum | (x) | 55.56 | 38.9 | % | 133.5 | % | 247.8 | % | 320.8 | % | ||||||||||||||
| Midpoint | 55.56 | 38.9 | % | 133.5 | % | 247.8 | % | 320.8 | % | |||||||||||||||
| Maximum | 58.82 | 47.0 | % | 147.2 | % | 268.3 | % | 345.6 | % | |||||||||||||||
| Adjusted Maximum | 58.82 | 47.0 | % | 147.2 | % | 268.3 | % | 345.6 | % | |||||||||||||||
| Price / Book Value | P/B | 73.94 | 72.67 | 83.38 | 76.99 | |||||||||||||||||||
| Minimum | (%) | 43.38 | -41.3 | % | -40.3 | % | -48.0 | % | -43.7 | % | ||||||||||||||
| Midpoint | 47.76 | -35.4 | % | -34.3 | % | -42.7 | % | -38.0 | % | |||||||||||||||
| Maximum | 51.60 | -30.2 | % | -29.0 | % | -38.1 | % | -33.0 | % | |||||||||||||||
| Adjusted Maximum | 55.46 | -25.0 | % | -23.7 | % | -33.5 | % | -28.0 | % | |||||||||||||||
| Price / Tangible Book | P/TB | 74.69 | 73.50 | 92.51 | 80.88 | |||||||||||||||||||
| Minimum | (%) | 43.38 | -41.9 | % | -41.0 | % | -53.1 | % | -46.4 | % | ||||||||||||||
| Midpoint | 47.76 | -36.1 | % | -35.0 | % | -48.4 | % | -41.0 | % | |||||||||||||||
| Maximum | 51.60 | -30.9 | % | -29.8 | % | -44.2 | % | -36.2 | % | |||||||||||||||
| Adjusted Maximum | 55.46 | -25.7 | % | -24.5 | % | -40.0 | % | -31.4 | % | |||||||||||||||
| Price / Total Assets | P/A | 11.45 | 9.56 | 10.19 | 9.47 | |||||||||||||||||||
| Minimum | (%) | 3.22 | -71.9 | % | -66.4 | % | -68.4 | % | -66.0 | % | ||||||||||||||
| Midpoint | 3.77 | -67.1 | % | -60.6 | % | -63.1 | % | -60.2 | % | |||||||||||||||
| Maximum | 4.31 | -62.4 | % | -55.0 | % | -57.7 | % | -54.5 | % | |||||||||||||||
| Adjusted Maximum | 4.93 | -57.0 | % | -48.5 | % | -51.7 | % | -48.0 | % | |||||||||||||||
(1) Excludes companies subject to mutual holding company ownership or pending acquisition.
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 14
Financial and Market Data for All Public Thrifts
| Total | Tang. | Closing | Total | Price/ | Price/ | Price/ | Price/ | Price/ | |||||||||||||||||||||||||
| Total | Equity/ | Equity/ | LTM | LTM | Price | Market | LTM | Core | Book | Tang. | Total | Div. | |||||||||||||||||||||
| Assets | Assets | Assets | ROA | ROE | 7/18/24 | Value | EPS | EPS | Value | Book | Assets | Yield | |||||||||||||||||||||
| Company | State | Ticker | ($Mil.) | (%) | (%) | (%) | (%) | ($) | ($Mil.) | (x) | (x) | (%) | (%) | (%) | (%) | ||||||||||||||||||
| All Public Thrifts (1) | |||||||||||||||||||||||||||||||||
| 1895 Bancorp of Wisconsin, Inc. | WI | BCOW | 564 | 12.67 | 12.67 | (1.23 | ) | (9.47 | ) | 8.76 | 48.7 | NM | NM | 73.6 | 73.6 | 9.33 | 0.00 | ||||||||||||||||
| Affinity Bancshares, Inc. | GA | AFBI | 870 | 14.18 | 12.33 | 0.70 | 5.06 | 21.15 | 135.8 | 23.0 | 22.4 | 110.1 | 129.3 | 15.61 | 0.00 | ||||||||||||||||||
| Axos Financial, Inc. | NV | AX | 22,642 | 9.70 | 9.12 | 2.07 | 21.71 | 69.81 | 4,065.2 | 9.5 | 10.9 | 181.4 | 194.2 | 17.60 | 0.00 | ||||||||||||||||||
| Blue Foundry Bancorp | NJ | BLFY | 2,028 | 17.27 | 17.25 | (0.44 | ) | (2.49 | ) | 10.56 | 231.3 | NM | NM | 72.3 | 72.4 | 12.48 | 0.00 | ||||||||||||||||
| Broadway Financial Corporation | CA | BYFC | 1,370 | 20.54 | 18.89 | 0.22 | 0.99 | 4.87 | 29.7 | 16.2 | NM | 33.4 | 42.4 | 3.59 | 0.00 | ||||||||||||||||||
| BV Financial, Inc. | MD | BVFL | 893 | 22.60 | 21.25 | 1.47 | 8.12 | 13.25 | 150.6 | 11.0 | 11.0 | 74.7 | 80.9 | 16.89 | 0.00 | ||||||||||||||||||
| Capitol Federal Financial, Inc. | KS | CFFN | 9,721 | 10.54 | 10.45 | (1.14 | ) | (11.00 | ) | 6.25 | 813.3 | NM | 17.0 | 80.9 | 81.7 | 8.53 | 5.42 | ||||||||||||||||
| Carver Bancorp, Inc. | NY | CARV | 757 | 5.59 | 5.59 | (0.40 | ) | (7.04 | ) | 1.54 | 7.7 | NM | NM | 38.5 | 38.5 | 1.08 | 0.00 | ||||||||||||||||
| Catalyst Bancorp, Inc. | LA | CLST | 282 | 28.85 | 28.85 | (1.53 | ) | (4.97 | ) | 11.88 | 53.6 | NM | NM | 66.6 | 66.6 | 19.20 | 0.00 | ||||||||||||||||
| Central Plains Bancshares, Inc. | NE | CPBI | 463 | 16.90 | NA | 0.85 | 8.32 | 10.67 | 44.2 | 4.9 | 4.9 | 56.3 | NA | 9.51 | 0.00 | ||||||||||||||||||
| Cullman Bancorp, Inc. | AL | CULL | 421 | 24.09 | 24.09 | 0.88 | 3.61 | 10.00 | 69.6 | 20.0 | 20.0 | 71.7 | 71.7 | 17.27 | 1.20 | ||||||||||||||||||
| ECB Bancorp, Inc. | MA | ECBK | 1,303 | 12.72 | 12.72 | 0.34 | 2.53 | 12.90 | 121.2 | 26.3 | 26.7 | 71.9 | 71.9 | 9.15 | 0.00 | ||||||||||||||||||
| ESSA Bancorp, Inc. | PA | ESSA | 2,191 | 10.20 | 9.63 | 0.83 | 8.10 | 19.67 | 189.9 | 10.6 | 10.5 | 89.2 | 95.0 | 9.10 | 3.00 | ||||||||||||||||||
| First Northwest Bancorp | WA | FNWB | 2,240 | 7.17 | 7.12 | (0.04 | ) | (0.58 | ) | 10.22 | 89.2 | NM | 16.7 | 60.1 | 60.5 | 4.31 | 2.75 | ||||||||||||||||
| First Seacoast Bancorp, Inc. | NH | FSEA | 576 | 11.23 | 11.19 | (2.19 | ) | (17.59 | ) | 9.18 | 42.8 | NM | NA | 72.0 | 72.3 | 8.09 | 0.00 | ||||||||||||||||
| FS Bancorp, Inc. | WA | FSBW | 2,970 | 9.36 | 8.74 | 1.24 | 14.14 | 40.58 | 322.9 | 8.9 | 7.0 | 114.0 | 122.8 | 10.67 | 2.58 | ||||||||||||||||||
| Generations Bancorp NY, Inc. | NY | GBNY | 411 | 8.98 | 8.84 | (0.48 | ) | (5.31 | ) | 10.50 | 24.4 | NM | NM | 63.8 | 64.9 | 5.73 | 0.00 | ||||||||||||||||
| HarborOne Bancorp, Inc. | MA | HONE | 5,862 | 9.85 | 8.92 | 0.28 | 2.71 | 12.64 | 540.9 | 34.2 | 21.7 | 98.6 | 110.1 | 9.71 | 2.47 | ||||||||||||||||||
| Hingham Institution for Savings | MA | HIFS | 4,521 | 9.23 | 9.23 | 0.48 | 5.00 | 218.21 | 477.5 | 23.2 | NM | 114.0 | 114.0 | 10.52 | 1.15 | ||||||||||||||||||
| Home Federal Bancorp, Inc. | LA | HFBL | 643 | 8.17 | 7.56 | 0.64 | 8.23 | 11.26 | 34.0 | 8.3 | 7.8 | 67.4 | 73.3 | 5.51 | 4.44 | ||||||||||||||||||
| IF Bancorp, Inc. | IL | IROQ | 905 | 8.00 | 8.00 | 0.22 | 2.76 | 16.75 | 53.8 | 27.5 | 27.5 | 77.6 | 77.6 | 6.21 | 2.39 | ||||||||||||||||||
| Kearny Financial Corp. | NJ | KRNY | 7,842 | 10.83 | 8.34 | 0.19 | 1.81 | 6.75 | 436.8 | 27.0 | 14.4 | 51.2 | 68.4 | 5.55 | 6.27 | ||||||||||||||||||
| Magyar Bancorp, Inc. | NJ | MGYR | 929 | 11.59 | 11.59 | 0.85 | 7.35 | 11.95 | 79.1 | 10.0 | 10.0 | 73.3 | 8.50 | 1.67 | |||||||||||||||||||
| New York Community Bancorp, Inc. | NY | NYCB | 112,900 | 7.43 | 6.95 | (2.08 | ) | (23.16 | ) | 11.09 | 4,018.9 | NM | NM | 37.7 | 40.7 | 2.65 | 1.05 | ||||||||||||||||
| Northeast Community Bancorp, Inc. | NY | NECB | 1,867 | 15.48 | 15.48 | 2.75 | 16.80 | 20.56 | 245.0 | 6.4 | 6.4 | 100.1 | 100.1 | 15.49 | 1.92 | ||||||||||||||||||
| Northfield Bancorp, Inc. | NJ | NFBK | 5,852 | 11.94 | 11.31 | 0.57 | 4.66 | 11.56 | 526.4 | 15.4 | 15.4 | 73.6 | 78.2 | 8.78 | 4.38 | ||||||||||||||||||
| NSTS Bancorp, Inc. | IL | NSTS | 266 | 28.98 | 28.98 | (1.70 | ) | (5.55 | ) | 10.05 | 49.3 | NM | NM | 69.4 | 69.4 | 20.12 | 0.00 | ||||||||||||||||
| PB Bankshares, Inc. | PA | PBBK | 450 | 10.38 | 10.38 | 0.43 | 3.74 | 15.02 | 36.7 | 20.3 | 20.1 | 84.5 | 84.5 | 8.77 | 0.00 | ||||||||||||||||||
| Ponce Financial Group, Inc. | NY | PDLB | 2,819 | 17.51 | 17.51 | 0.20 | 1.11 | 9.82 | 223.6 | 39.3 | NA | 87.0 | 87.0 | 9.01 | 0.00 | ||||||||||||||||||
| Provident Bancorp, Inc. | MA | PVBC | 1,659 | 13.70 | 13.70 | 0.83 | 6.34 | 11.09 | 200.2 | 13.2 | 13.2 | 86.2 | 86.2 | 11.81 | 0.00 |
FELDMAN FINANCIAL ADVISORS, INC.
Exhibit 14 (continued)
Financial and Market Data for All Public Thrifts
| Total | Tang. | Closing | Total | Price/ | Price/ | Price/ | Price/ | Price/ | |||||||||||||||||||||||||
| Total | Equity/ | Equity/ | LTM | LTM | Price | Market | LTM | Core | Book | Tang. | Total | Div. | |||||||||||||||||||||
| Assets | Assets | Assets | ROA | ROE | 7/18/24 | Value | EPS | EPS | Value | Book | Assets | Yield | |||||||||||||||||||||
| Company | State | Ticker | ($Mil.) | (%) | (%) | (%) | (%) | ($) | ($Mil.) | (x) | (x) | (%) | (%) | (%) | (%) | ||||||||||||||||||
| Provident Financial Holdings, Inc. | CA | PROV | 1,290 | 10.04 | 10.04 | 0.56 | 5.51 | 12.59 | 87.9 | 12.1 | 12.1 | 67.0 | 67.0 | 6.73 | 4.38 | ||||||||||||||||||
| Provident Financial Services, Inc. | NJ | PFS | 14,131 | 12.00 | 9.06 | 0.86 | 7.22 | 17.63 | 1,361.0 | 11.0 | 10.2 | 79.0 | 108.1 | 9.47 | 5.34 | ||||||||||||||||||
| Riverview Bancorp, Inc. | WA | RVSB | 1,522 | 10.23 | 8.58 | 0.24 | 2.43 | 4.44 | 93.5 | 24.7 | 11.9 | 60.2 | 73.1 | 6.16 | 1.81 | ||||||||||||||||||
| SR Bancorp, Inc. | NJ | SRBK | 1,053 | 18.93 | 16.66 | (0.82 | ) | (4.54 | ) | 9.50 | 91.0 | NA | NA | 45.3 | 52.9 | 8.58 | 0.00 | ||||||||||||||||
| Sterling Bancorp, Inc. | MI | SBT | 2,415 | 13.55 | 13.55 | 0.32 | 2.42 | 5.56 | 299.7 | 34.8 | 34.1 | 88.4 | 88.4 | 11.98 | 0.00 | ||||||||||||||||||
| TC Bancshares, Inc. | GA | TCBC | 475 | 16.40 | 16.40 | (0.01 | ) | (0.05 | ) | 13.81 | 53.7 | NM | NM | 76.7 | 76.7 | 12.57 | 0.73 | ||||||||||||||||
| Texas Community Bancshares, Inc. | TX | TCBS | 464 | 11.10 | 11.05 | (0.55 | ) | (5.33 | ) | 14.25 | 42.3 | NM | 37.3 | 88.3 | 88.7 | 9.80 | 1.12 | ||||||||||||||||
| Timberland Bancorp, Inc. | WA | TSBK | 1,907 | 12.51 | 11.79 | 1.36 | 10.73 | 29.19 | 239.8 | 9.6 | 9.6 | 98.1 | 105.0 | 12.28 | 3.21 | ||||||||||||||||||
| Triumph Financial, Inc. | TX | TFIN | 5,783 | 15.12 | 11.21 | 0.53 | 3.37 | 82.38 | 2,183.7 | NM | NA | 232.0 | 334.8 | NA | 0.00 | ||||||||||||||||||
| TrustCo Bank Corp NY | NY | TRST | 6,180 | 10.51 | 10.50 | 0.87 | 8.42 | 32.46 | 626.5 | 11.6 | 11.1 | 95.1 | 95.2 | 9.99 | 4.37 | ||||||||||||||||||
| Waterstone Financial, Inc. | WI | WSBF | 2,235 | 15.13 | 15.10 | 0.47 | 2.92 | 14.65 | 277.8 | 28.2 | 28.2 | 86.3 | 86.5 | 13.05 | 4.02 | ||||||||||||||||||
| Western New England Bancorp, Inc. | MA | WNEB | 2,557 | 9.22 | 8.71 | 0.50 | 5.43 | 8.43 | 180.3 | 14.1 | 13.5 | 77.3 | 82.3 | 7.13 | 3.33 | ||||||||||||||||||
| William Penn Bancorporation | PA | WMPN | 819 | 15.22 | 14.68 | 0.02 | 0.13 | 12.04 | 113.0 | NM | NM | 90.3 | 94.2 | 13.74 | 1.00 | ||||||||||||||||||
| WSFS Financial Corporation | DE | WSFS | 20,579 | 11.98 | 7.51 | 1.34 | 11.59 | 55.01 | 3,355.0 | 12.3 | 11.7 | 133.6 | 223.5 | 16.05 | 1.07 | ||||||||||||||||||
| Average | 5,855 | 13.35 | 12.59 | 0.24 | 2.19 | NA | 508.4 | 17.7 | 16.0 | 83.4 | 92.5 | 10.19 | 1.62 | ||||||||||||||||||||
| Median | 1,590 | 11.96 | 11.19 | 0.39 | 2.84 | NA | 143.2 | 14.1 | 13.2 | 77.0 | 80.9 | 9.47 | 1.06 |
(1) Public thrifts traded on NYSE, NYSE American, and NASDAQ stock markets; excludes companies subject to pending acquisitions or mutual holding company ownership.
Source: S&P Global.