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Case 6, Sun Coast Savings Bank

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Case 6, Sun Coast Savings Bank
Case 6
Going Public Sun Coast Savings Bank

Question 3

a) Calculating the Net worth-to-Asset ratios for the peer-group

Figure 3.1: Net worth-to-Asset ratios
| |Net Worth |Assets |NW/A |
|Virginia Federal |950 |14000 |0.068 |
|Southland Financial |2020 |35000 |0.058 |
|Texas Federal |1130 |24000 |0.047 |
|Great Southern Financial |1400 |27000 |0.052 |

b) Calculating the compound growth rates in earnings per share for the peer-group

Figure 3.2: Compound growth rates
| |EPS 1987 |EPS 1992 |Compound Growth |
|Virginia Federal |2.5 |5.25 |15.99% |
|Southland Financial |0.83 |2 |19.23% |
|Texas Federal |1.59 |5.4 |27.70% |
|Great Southern Financial |3.94 |6.25 |9.67% |

c) Calculating the Price-to-Earnings ratios for the peer-group

Figure 3.3: PE ratios
| |Price |EPS 1992 |PE ratio |
|Virginia Federal |32 |5.25 |6.1 |
|Southland Financial |17 |2 |8.5 |
|Texas Federal |25 |5.4 |4.63
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