Estate of Helen J. Smith, Deceased, Frederic L. Foill II and Cassandra F. Vallery, Co-Executors - Page 32




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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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