Free Motion in Limine - District Court of Federal Claims - federal

Case 1:95-cv-00468-TCW

Document 204-7

Filed 05/01/2007

Page 1 of 6

Asset Quality- Fidelity Compared to all Thrifts 1989 to 1 993 (Dollar Amounts in Millions)
(Troubled Assets as a Percentage of Total Assets, Fidelity versus All U.S. at Dec. 31)

4.50%

4.00%
3.50%

[] Fidelity [] All U.S.
3.80%

3.44% 3.10%

3.51%

3,23%

3.08%

3.00%

2.50%
2.00%
1.96%

1.50%

1 .oo% 0.50%
0.00%
1989 1990 1991 1992 1993 1994
Troubled Assets consist of accrual and non-accrual loans 90 days or more past due and real estate acquired through foreclosure

Source: Fidefity 1993 Annual Report (PX 1048 at 20); 9/30/94 IOQ (PX 1 !48 at 14); OTS 1998 Fact Book (PX 1322, Table 5.1)o Fidefity ratios for 1989-1991 are as of March 31, 1990-1992; 1994 data are as of September 30, 1994

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Case 1:95-cv-00468-TCW

Document 204-7

Filed 05/01/2007

Page 2 of 6

Post-Conversion Operations

Fidelity resumed growing its asset base following the conversion, but had no meaningful cushion above FDICIA wellcapitalized standard, limiting operating and strategic options o Absent the breach, Fidelity would have had higher capital, higher earnings, and more choices Fidelity .entered into preliminary discussions to acquire a New York thrift, but was limited in what it could offer by its financial condition o Absent the breach, Fidelity would have been viable as an acquirer of other thrifts or branch offices Fidelity assessed its longer-term strategic options and elected to enter into negotiations to be acquired as the best strategy to maximize stockholder value o The conversion proceeds did not fully mitigate the loss of supervisory goodwill On July 13, 1994, Fidelity agreed to be acquired by Astoria Financial Corporation for $29 per share in cash o Absent the breach, Fidelity would have been an even more attractive acquisition candidate, but would have had the ability to do so when it chose and on more favorable terms o Absent the breach, Fidelity might be still be operating as an independent company

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Case 1:95-cv-00468-TCW

Document 204-7

Filed 05/01/2007

Page 3 of 6

Fidelity's Projected Non-Breached Growth Rates 1988 Three Year Plan, Updated Jan 17, 1989 (Millions)
Total Assets (a) Dec-88 Mar-89 Jun-89 Sep-89 Dec-89 Mar-90 Jun-90 Sep-90 Dec-90 Mar-91 J u n-91 Sep-91 Dec-91 2,020 2,039 2,084 2,111 2,109 2,149 2,197 2,245 2,298 2,347 2,398 2,451 2,503 Total Assets Quarterly Growth Rate (b) 0.96% 2.21% 1.28% -0.08% 1.88% 2.26% 2.15% 2.36% 2.13% 2.20% 2.21% 2.10% 4.42% 8.94% 8.92% 7.41% Goodwill & Regulatory Intangibles (c) 154 152 151 149 148 146 144 143 141 140 138 137 135 Tangible Assets (d) = (a) - (c) 1,866 1,887 1,934 1,962 1,962 2,003 2,053 2,102 2, 156 2,207 2,260 2,314 2,367 Tangible Assets Quarterly Growth Rate (e) 1.12% 2.47% 1.45% -0.01% 2.10% 2.50% 2.38% 2.60% 2.34% 2.40% 2.41% 2.29% 5.10% 9.92% 9.78% 8.25%

Annual Growth Rates: 1989 1990 1991 1989-1991 (compound annual)

Note: (c) Regulatory accounting, includes capital credit and 30-year amortization

Source: Fidelity New York Budget Model (PX 463 at AST0703570-87)

PDX 65

Case 1:95-cv-00468-TCW

Document 204-7

Filed 05/01/2007

Page 4 of 6

Composition of Earning Assets 1988 to 1994 (Millions)
$2,500

$2,000

Investments $1,500 Other Mortgage-Backed Securities

$1,000

$500

Mar 1988

Mar 1989

Mar 1990

Mar 1991

Mar 1992

Dec 1992

Dec 1993

Dec 1994

Source: Fidefity Consolidated Financial Statements 1988-1994 (PX 476, 707, 867, 949, DX 1199, PX 1323); Investment Committee Report Schedules 1988-1994

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Case 1:95-cv-00468-TCW

Document 204-7

Filed 05/01/2007

Page 5 of 6

Composition of Funding Sources 1988 to 1994 (Millions)
$2,500 [] [] [] [] Other Borrowings Reverse Repos Tangible Capital Deposits FHLB Advances & Other Borrowings $1,500 Reverse Repurchase Agreements

$2,000

$1,000

$50O

g

Mar 1988

Mar 1989

Mar 1990

Mar 1991

Mar 1992

Dec 1992

Dec 1993

Dec 1994

Source: Fidelity Consofidated Financial Statements, 1988-1994 (PX476, 707, 887, 949, DX 1199, PX 1323)

PDX 68 I

Case 1:95-cv-00468-TCW

Document 204-7

Filed 05/01/2007

Page 6 of 6

Fidelity New York, FSB Wholesale Spreads - All MBS Less All Borrowings

Yield on All MBS(a) 12 Mths ended Mar. 1990 (c) 12 Mths ended Mar. 1991 12 Mths ended Mar. 1992 9 Mths ended Dec. 1992 12 Mths ended Dec. 1993 9 Mths ended Sep. 1994 3 Mths ended D~c. 1994 Average Spread(d) 8.79% 9.13% 8.15% 6.56% 5.56% 5.38% 5.82%

Cost of All Borrowings(b) 9.09% 8.26% 6.34% 5.20% 4.71% 4.60% 5.51%

Yield-Cost Spread -0.30% 0.87% 1.81% 1.36% 0.85% 0.78% 0.31% 0.91%

Notes: (a) Interest income, including amodization of premiums and discounts on all types of mortgage-backed securities, fixed and adjustable rate, divided by the monthly average balances of such securities outstanding during the periods. Excludes gains or losses on the sale of securities. (b) Interest expense on all types of borrowings, short-term repurchase agreements, short and long-term FHLB advances, and other borrowings outstanding divided by the mon!hly average balances of such borrowings outstanding during the periods. (c) Yields and costs calculated from 1990 audited financials, using beginning and end of year balances (d) Weighted by the number of months in each period, except for the period ended March 31, 1990, which is weighted for 9 months

Sources: Exhibit 8A (Revised) (PX 1314); PX 1291; PX 980 at 57-58, PX 1250 at 14, September 30, 1994 IOQ at 10 (PX 1148), and Dec.ember 31, 1994 Quarterly Financials (PX 1315)

I

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