- 51 -
can suffer from lack of marketability, because of the absence of
a ready private placement market and the costs of floating a
public offering. See id. at 953.
We agree with Mr. Fuller's use of the guideline method and
his adjustments to reflect excess capital; however, we do not
think that his selection of guideline companies was appropriate,
in light of Peoples' thriftlike operations and earnings base.
Five of the seven guideline companies selected by Mr. Fuller were
bank holding companies engaged in a broad range of personal and
commercial banking services. Only two of the guideline companies
chosen were thrifts, and like most of the other guideline
companies, they were multibranch institutions that had
significantly greater assets than Peoples, though not by the same
order of magnitude as the banks on the VL bank list. On its
December 31, 1992, balance sheet, Peoples reported total assets
of $90.6 million; in comparison, the mean and median total asset
values of the guideline companies were $303.1 million and $323.3
million, respectively, for the comparable period.24
2. Petitioner's Expert
Petitioner relies on the expert report of James E. Magee, a
director and senior associate of Alex Sheshunoff & Co. Investment
Banking (ASC). Headquartered in Austin, Texas, ASC is nationally
24 Mr. Fuller provided asset values for six of the guideline
companies as of Dec. 31, 1992, and for the seventh as of
Dec. 31, 1993.
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