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Mr. Egan relied on numerous “quantitative” factors. In
general, according to Mr. Egan’s report, FNBW was superior to the
comparable companies with respect to factors relating to
financial soundness and inferior with respect to factors relating
to income growth potential. Mr. Egan’s report made the following
comparisons: FNBW had slightly less total income, and
substantially less net income, than the median comparable
company. Also, FNBW grew less than the median. The median had a
substantially higher total income to net worth ratio. On the
other hand, FNBW had a substantially higher net income to total
income ratio. Thus, the net income to net worth ratio (also
known as return on equity) was almost the same between the median
and FNBW. With respect to the ratio of net income to total
assets, also known as return on assets, FNBW substantially
outperformed the median.
Mr. Egan next examined comparisons of ratios that related to
the financial condition of FNBW and the median comparable
company. His report made the following comparisons: FNBW had a
substantially higher cash and investments to total assets ratio
than the median and a substantially lower loans to total assets
ratio. While both FNBW and the median had very high total
liabilities to total assets ratios (typical for banks, which are
usually financed by deposits, which are liabilities), FNBW’s was
a little lower than the median. For the net worth to total
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