howe barnes

8/2/2019 Howe Barnes

1/12

Daniel CardenasSenior Vice President

[email protected](312) 655-2986

Don WorthingtonFirst Vice [email protected](415) 538-5733

Kristin HottiVice [email protected](415) 538-5712

Brian Martin, CFA

Vice [email protected](312) 655-2987

Mary QuinnVice [email protected](312) 655-2984 PAGES

Jason Werner, CFA BUY 1Vice President

[email protected] CALIFORNIA 2(312) 655-2947

MIDWEST 3 - 5

Ryan Whitmore, CFAResearch Associate PACIFIC NORTHWEST [email protected](312) 655-2955 SOUTHEAST 7

FOOTNOTES 8

INDUSTRY MEDIANS AND PRICE PERFORMANCE 9

DISCLOSURES 10 - 11

June 4, 2008

Please refer to the last two pages of this report and individual equity reports for important disclosures.

For a copy of these reports and other important disclosures, call 800-800-4693

CONTENTS

Howe Barnes Hoefer & Arnett

Coverage Universe


2/12


3/12


4/12


5/12


6/12


7/12


8/12


9/12

1 2007A EPS includes $0.08 in nonrecurring gains.

2 2007A EPS excludes net nonrecurring items of $0.15.3 2007A EPS excludes YTD net nonrecurring expense of $0.26.

4 2007A EPS excludes nonrecurring expense of $0.26.

5 2008E EPS includes $0.02 in securities gains.

6 2008E EPS includes gains from the sale of securities.7 2007A EPS includes $0.12 of nonrecurring items.

8 2008E EPS includes $0.02 in one-time expenses.9 2007A EPS includes nonrecurring income and expenses.

10 2008E EPS excludes expected one-time charge.11 2007A EPS excludes $0.07 in net nonrecurring charges.

2008E EPS includes $0.05 of nonrecurring gains.

12 2007A EPS excludes a $2.14 write-off of goodwill.13 2007A EPS includes $0.17 in one-time expenses.

14 2008E EPS excludes $0.13 nonrecurring VISA gains.15 2007A EPS excludes $0.05 securities gains.

16 2007A EPS excludes $0.02 FAS 159 gain.17 2007A EPS excludes $0.09 restructuring charge.

18 2007A EPS excludes $0.03 net nonrecurring gain.19 2007A EPS excludes securities transactions and nonrecurring items.

20 2007A EPS excludes $0.03 nonreccuring gain.21 2007A EPS excludes securities transactions and nonrecurring gains.

22 2007A EPS excludes securities transactions and nonrecurring items.

23 2007A EPS excludes nonrecurring loss on obsolete fixed assets.24 2007A EPS excludes merger-related charges and nonrecurring items.

25 2007E EPS excludes $0.04 in nonrecurring expense.26 2007A EPS excludes $0.05 securities gains.

2008E EPS excludes $0.03 nonrecurring gain.27 2007A EPS excludes $0.06 of merger expenses.

28 2007A EPS excludes $0.05 in aggregate securities gains and nonrecurring items.

Howe Barnes Hoefer & Arnett, Inc.

June 4, 2

Pa

Coverage Universe

FOOTNOTES


10/12

Coverage Universe

Dates Graphed: 06/03/03 - 06/03/08

Price Performance

YTD 5-Year

2008 2007 2006 2005 2004 2003 Average(%) (%) (%) (%) (%) (%) (%)

NASDAQ Bank Index (8.8) (22.1) 11.0 (4.3) 11.0 29.9 5.1S&P 500 Index (6.2) 3.5 13.6 3.0 9.0 26.3 11.1

SNL Bank Indexes

Assets > $10B (16.6) (25.1) 13.3 (1.9) 7.6 30.4 4.9Assets of $5B - $10B (8.2) (22.1) 5.4 (5.4) 14.5 34.9 5.5Assets of $1B - $5B (7.0) (28.9) 13.3 (3.7) 20.9 32.9 6.9Assets of $500M - $1B (10.3) (21.7) 11.5 1.8 10.9 41.2 8.7Assets < $500M (6.8) (20.2) 3.4 4.5 13.1 43.6 8.9

SNL Thrift Indexes

Assets > $10B (13.3) (50.2) 13.4 4.0 8.1 35.6 2.2Assets of $5B - $10B 5.6 (23.7) 11.8 (10.3) 7.3 40.8 5.2Assets of $1B - $5B (3.9) (23.9) 12.1 (3.4) 11.1 47.1 8.6Assets of $500M - $1B (5.5) (22.4) 20.1 (6.9) 8.3 39.4 7.7Assets < $500M (1.2) (17.2) 9.4 (8.2) 4.6 37.6 5.2

Indexes priced as of 06/03/08Data Source: SmartStation and SNL Financial

Industry Medians

ROAA ROAE

2007 2008 2009 Stated Tangible 2008/2007 2009/2008 LTM LTM(X) (X) (X) (%) (%) (%) (%) (%) (%)

Banks

Assets < $500 Mil 14.4 15.1 11.3 102.5 108.0 (16.7) 16.8 0.71 7.71Assets b/w $500 Mil - $1 Bil 12.7 12.8 10.8 106.9 121.8 (7.4) 17.9 0.82 9.75Assets b/w $1 - $5 Bil 13.4 13.9 12.0 111.9 146.2 (5.7) 14.3 0.91 9.75

Assets b/w $5 - $10 Bil 13.2 13.4 12.2 121.4 182.1 (1.7) 9.4 0.95 8.76Assets > $10 Bil 11.3 13.1 11.2 107.0 162.8 (10.3) 12.5 1.13 11.40

Thrifts

Assets < $500 Mil 31.7 30.8 76.9 96.3 100.7 (20.0) 143.8 0.44 3.63

Assets b/w $500 Mil - $1 Bil 19.7 16.4 16.3 98.9 104.9 6.9 7.8 0.46 4.60

Assets b/w $1 Bil - $5 Bil 18.8 15.3 14.2 110.1 124.9 8.9 14.0 0.58 5.41

Assets b/w $5 Bil - $10 Bil 24.5 23.0 19.9 96.0 178.4 14.4 12.9 0.54 3.41

Assets > $10 Bil 17.3 20.1 13.6 54.5 148.9 12.2 3.0 0.35 2.72

Industry Medians Priced as of 06/03/08Data Source: SNL Financial

Howe Barnes Hoefer & Arnett, Inc. Pag

Industry Medians And Price Performance

Price EPS Core

June 4, 2

Price/Earnings Growth RateBook Value

5-Yr. Comparative Return

-20.00%

0.00%

20.00%

40.00%

60.00%

80.00%

Jun-03 Oct-03 Feb-04 Jun-04 Oct-04 Feb-05 Jun-05 Oct-05 Feb-06 Jun-06 Oct-06 Feb-07 Jun-07 Oct-07 Feb-08 Jun-08

Nasdaq Bank Index S&P 500


11/12

Coverage Universe

RATING SYSTEM

Category Description

BUY

NEUTRAL Those equities that we think will provide an expected total return (price appreciation plus dividend yield) of 0-10% over the next 12 months.

SELL Those equities that we think will provide a negative expected total return (price appreciation plus dividend yield) over the next 12 months.

RATING DISTRIBUTION (as of March 31, 2008)

Coverage Universe Count Percent Investment Banking Relationship* Count Percent

BUY 20 16.5% BUY 2 16.7%

NEUTRAL 96 79.3% NEUTRAL 10 83.3%

SELL 5 4.1% SELL 0 0.0%

ADDITIONAL INFORMATION AVAILABLE UPON REQUEST

Howe Barnes Hoefer & Arnett, Inc. makes a market in the companies listed in this report.

Midwest Banc Holdings, Inc. Silver State Bancorp Temecula Valley Bancorp Inc.

AmericanWest Bancorporation East West Bancorp, Inc.

American River Bankshares Independent Bank Corporation Prosperity Bancshares, Inc.

Center Financial Corporation Midwest Banc Holdings, Inc. Silver State BancorpEast West Bancorp, Inc. MidWestOne Financial Group, Inc. Temecula Valley Bancorp Inc.

Firstbank Corporation Old Second Bancorp, Inc. Tower Financial Corporation

Alliance Bankshares Corporation First Financial Service Corporation Northern States Financial Corporation

AMCORE Financial, Inc. First Merchants Corporation Northrim BanCorp, Inc.

American River Bankshares Firstbank Corporation Old Second Bancorp, Inc.AmericanWest Bancorporation Frontier Financial Corporation Pacific State Bancorp

Anchor BanCorp Wisconsin Inc. Great Southern Bancorp, Inc. Peoples Bancorp Inc.

BancFirst Corporation Green Bankshares, Inc. Preferred Bank

Bank Mutual Corporation Hanmi Financial Corporation Princeton National Bancorp, Inc.

Bank of Commerce Holdings Heartland Financial USA, Inc. Prosperity Bancshares, Inc.

Bank of Marin Bancorp Heritage Oaks Bancorp Pulaski Financial Corp.

Banner Corporation HMN Financial, Inc. Riverview Bancorp, Inc.

Baylake Corp. HopFed Bancorp, Inc. Sierra Bancorp

Capital Bank Corporation Horizon Bancorp Silver State Bancorp

Capital Corp of the West Horizon Financial Corp. Superior Bancorp

Cascade Financial Corporation Independent Bank Corporation Taylor Capital Group, Inc.

Cathay General Bancorp Indiana Community Bancorp Team Financial, Inc.Center Financial Corporation Integra Bank Corporation Teche Holding Company

Central Valley Community Bancorp LNB Bancorp, Inc. Temecula Valley Bancorp Inc.Citizens South Banking Corporation Macatawa Bank Corporation Timberland Bancorp, Inc.

Columbia Bancorp MainSource Financial Group, Inc. Tower Financial Corporation

Community Capital Corporation MB Financial, Inc. TriCo BancsharesCommunity Trust Bancorp, Inc. MBT Financial Corp. UCBH Holdings, Inc.

Corus Bankshares, Inc. Mercantile Bank Corporation West Bancorporation, Inc.DCB Financial Corp MidSouth Bancorp, Inc. Wilshire Bancorp, Inc.

Dearborn Bancorp, Inc. Midwest Banc Holdings, Inc. Yadkin Valley Financial CorporationEast West Bancorp, Inc. MidWestOne Financial Group, Inc.

Enterprise Financial Services Corp Monroe BancorpFirst Busey Corporation MutualFirst Financial, Inc.

First Community Corporation New Century Bancorp, Inc.First Financial Bancorp. Nexity Financial Corporation

First Financial Corporation North Valley Bancorp

Howe Barnes Hoefer & Arnett, Inc. Pag

DISCLOSURES

June 4, 2

Howe Barnes Hoefer & Arnett, Inc. co-managed a public offering for the following companies within the past 12 months:

The following companies are or have been non-investment banking clients for securities-related services of Howe Barnes Hoefer &

Arnett, Inc. within the past 12 months:

Those equities that we think will provide an expected total return (price appreciation plus dividend yield) of 10% or more over the next 12 months.

Howe Barnes Hoefer & Arnett, Inc. and its affiliates beneficially own 1% or more of the common stock of Capital Corp of the West.

Howe Barnes Hoefer & Arnett, Inc. expects to receive compensation for investment banking services from the following companies withi

the next three months:

Howe Barnes Hoefer & Arnett, Inc. has received compensation for investment banking services from the following companies within the

12 months:

* Companies which Howe Barnes Hoefer & Arnett, Inc. has received within the past 12 months or will receive within the next 3 months compensation for services rendered in

connection with activities relating to: underwriting an offering for the issuer; acting as a financial advisor in a merger or acquisition; providing valuation services; or serving asplacement agent for the issuer. Percentages may not add up to 100.0% due to rounding.


12/12

Coverage Universe

Alliance Bankshares Corporation First Financial Service Corporation Northern States Financial Corporation

American River Bankshares First Merchants Corporation Northrim BanCorp, Inc.BancFirst Corporation Firstbank Corporation Old Second Bancorp, Inc.

Bank Mutual Corporation Great Southern Bancorp, Inc. Pacific State Bancorp

Bank of Commerce Holdings Hanmi Financial Corporation Peoples Bancorp Inc.Bank of Marin Bancorp Heartland Financial USA, Inc. Preferred BankBanner Corporation Heritage Oaks Bancorp Princeton National Bancorp, Inc.

Baylake Corp. HMN Financial, Inc. Prosperity Bancshares, Inc.

Capital Bank Corporation HopFed Bancorp, Inc. Pulaski Financial Corp.Cascade Financial Corporation Horizon Bancorp Riverview Bancorp, Inc.

Cathay General Bancorp Horizon Financial Corp. Sierra BancorpCenter Financial Corporation Indiana Community Bancorp Silver State BancorpCentral Valley Community Bancorp Macatawa Bank Corporation Superior BancorpCitizens South Banking Corporation MainSource Financial Group, Inc. Taylor Capital Group, Inc.

Columbia Bancorp MB Financial, Inc. Team Financial, Inc.Community Capital Corporation MBT Financial Corp. Teche Holding Company

Community Trust Bancorp, Inc. Mercantile Bank Corporation Temecula Valley Bancorp Inc.Corus Bankshares, Inc. MidSouth Bancorp, Inc. Timberland Bancorp, Inc.

Dearborn Bancorp, Inc. Midwest Banc Holdings, Inc. Tower Financial CorporationEnterprise Financial Services Corp MidWestOne Financial Group, Inc. TriCo Bancshares

First Busey Corporation Monroe Bancorp West Bancorporation, Inc.

First Community Corporation MutualFirst Financial, Inc. Wilshire Bancorp, Inc.First Financial Bancorp. New Century Bancorp, Inc. Yadkin Valley Financial Corporation

First Financial Corporation Nexity Financial Corporation

William R. Rybak, a member of the Board of Directors of Howe Barnes Hoefer & Arnett, Inc. is also a director of PrivateBancorp, Inc.

Howe Barnes Hoefer & Arnett, Inc. has received compensation for non-investment banking services from the following companies

within the past 12 months:

DISCLOSURES (CONTINUED)

June 4, 2

We, the research analysts responsible for this report, assert that the views expressed in this report accurately reflect our personalviews regarding all of the subject securities or issuers. We have not received, and will not receive, any compensation related tothe specific recommendations or views expressed in this report.

The factual statements herein have been taken from sources we believe to be reliable but such statements are made without anyrepresentation as to accuracy or completeness or otherwise and this report does not purport to be a complete analysis of the securities,companies or industries involved. All opinions and estimates included in this report are our own unless otherwise stated and are subject tochange without notice. This report has no regard to the specific investment objective; financial situation or particular needs of any specificrecipient and should not be considered as a solicitation or offer of the purchase or sale of securities. Howe Barnes Hoefer & Arnett, Inc.and/or its directors, officers and employees may have or have had interest or positions or traded or acted as principal in relevant securitiesand derivatives thereon. Howe Barnes Hoefer & Arnett, Inc. accepts no liability whatsoever for any loss or damage of any kind arising out of

the use of all or any part of this report. Howe Barnes Hoefer & Arnett, Inc. sets its price targets based on past financial performance, forwardlooking earning assumptions and absolute and relative valuation levels. Factors that could impede the achievement of our target priceinclude, but are not limited to, the following: shifts in investor sentiment and a weakening of 1) the subject companys fundamentals, 2)industry trends, 3) industry pricing multiples, 4) local and/or national economies, and 5) general market conditions. Research analystcompensation is based on general revenues and profits of Howe Barnes Hoefer & Arnett, Inc. as a whole, which includes revenues frominvestment banking activities. Prices shown are approximate.

howe barnes

Documents