Case 1:95-cv-00468-TCW
Document 204-3
Filed 05/01/2007
Page 1 of 6
Summary of Damages (Millions)
Independent Fidelity No Merger
Lost Profits: Lost Profits on Forgone Assets 1989-1994 Lost Profits on Forgone Assets 1995-2014 Loss from Premature Sale of FHLMC Stock Wounded Bank Costs Total With Astoria Merger
17.973 40.604 10.863 1.432
$ 70.872
17.973 97.162 10.863 1.432 127.430
Restitution: Avoided Liquidation Costs (Net) Wounded Bank Costs Total Reliance: Investment in Suburbia (Net) Wounded Bank Costs Total
$128.259 1.432
$129.691 $140.416 1.432 $141.848
Source: Kaplan Report Exhibits 17 (revised), 18, 22 (PX 1314)
PDX 9
Case 1:95-cv-00468-TCW
Document 204-3
Filed 05/01/2007
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Suburbia's Capital Position Fell by $.87 Million in Four Years (As of March 31, In Millions)
$40 $30
~I ~" '~"
$29.5 Million Capital at Mar. 31, 1979
I
I
$27.9
$21.0
$20 $10
$1.0
$$11.7)
$(10) $(20) $(30) $(40) $(501
$(53.6)
$(8.5)
[] Total Annual Loss [] Ending Capital
$(32.5)
$141.11
$(60) $(70) 1979 1980 1981 1982 1983
$(57.7) Million Capital at March 31, 1984
1984
Source: Suburbia Censofidated Financial Statements, 1980-!984 (PX 1286-1290)
I
PDX16
Case 1:95-cv-00468-TCW
Document 204-3
Filed 05/01/2007
Page 3 of 6
Reconcilation of Suburbia's Net Worth Under Generally Accepted and Regulatory Accounting Standards March 31, 1984 (Thousands)
Amount Book Value Deficit Calculated Following GAAP Deferred Losses on the Sales of Loans and Securities Appraised Equity Capital Net Worth Certificates Miscellaneous Differences Between Suburbia's Books and GAAP Regulatory Capital Reported to the FHLBB as of March 31, 1984 (57,679) 44,531 5,078 9,525 1,876 3,331
7 Approximate Minimum Regulatory Net Worth Requirement as of March 31, 1984 8 9 Net Worth Deficit Under Regulatory Accounting Net Worth Deficit Under GAAP Accounting
19,200 (15,869) (76,879)
Notes: Lines 1, 2, 4 from Suburbia Consolidated Financial Statements (PX 1290) Line 5 from Suburbia Consolidated Financial Statements (PX 1290 at 11) Lines 3, 6 from March 31, 1984 Suburbia Thrift Financial Report (PX 1316) Lines 7 equals 3% of total liabilities reported to the FHLBB as of March 31, 1984 (PX 1316)
Source: Suburbia Consofidated Financial Statements, March 31, 1984 (PX 1290); Surburbia Thrift Financial Report, March 31, 1984 (PX 1316)
PDX 19
Case 1:95-cv-00468-TCW
Document 204-3
Filed 05/01/2007
Page 4 of 6
Accounting for the Suburbia Acquisition Pro Forma as of March 31, 1984 (Thousands)
Suburbia GAAP Book Value (a)
1
Purchase Accounting Adjustments (b) (102,414) 160,093 57,679
Suburbia GAAP Market Value (c)= a + b 401,700 20,355 38,157 160,093 23,529 643,834 601,614 29,242 12,979 643,834
Fidelity Book Value (d) 245,055 70,499 105,700 24,309 23,826 469,389 368,664 69,161 11,364 449,189
Fidelity Plus Suburbia at Market Value (e) = c + d 646,755 ¯ 90,854 143,857 184,402 47,355 1,113,223 970,278 98,403 24,343 1,093,023
Plus: Contractual Benefits
(0
Fidelity After Merger (g) = e + f 646,755 90,854
Loans Receivable Investments FSLIC Capital Note
504,114 20,355 38,157
2 Mortgage-Backed Securities 3 4 5
16,000 9,175
159,857 9,175 184,402 47,355
Goodwill 6 Other Assets 7 Total Assets 8 Deposits 9 Borrowed Money lO Other Liabilities
23,529 586,155 601,614 29,242 12,979 643,834
25,175
1,138,398 970,278 98,403 24,343 1,093,023
11
Total Liabilities
12 FSLIC Net Worth Certificate 13 Retained Earnings 14 Total Net Worth (Capital) 15 Total Liabilities and Net Worth 18 Capital Ratio (line 14/11)
(57,679) (57,679) 586,155 -8.96%
57,679 643,834 0.00%
20,200 20,200 469,389 4.50%
20,200 20,200 1,113,223 1.85%
9,175 16,000 25,175 25,175
9,175 36,200 45,375 1,138,398 4.15%
Notes: (b) Represents the net impact of the final purchase accounting adjustments determined after the acquisition was completed; no mark to market analysis of Suburbia as of March 31, 1984 was ever performed. Net purchase accounting adjustments of,$102.414 million, shown in row 2 of column b, represent the difference between the final goodwill figure and the net worth deficit as of March 31, 1984.
Source:Suburbia Consolidated Financial Statements (PX 1290); Fidelity Thrift Financial Report (PX 1317), KPMG Workpapers (PX 569). (PX 1247 at KPMG 007084)
PDX 22
Case 1:95-cv-00468-TCW
Document 204-3
Filed 05/01/2007
Page 5 of 6
Suburbia Federal Savings and Loan Association Purchase Accounting Adjustments as of October 31, 1984 (Thousands)
Historical Amounts
1 2 3 4 5 6 7 8 First Mortgage Loans Other Loans Investments Office Property and Equipment Other assets Deferred Losses Goodwill Total .Assets 593,914 8,819 46,246 11,910 23,309 43,788 727,987 628,046 69,325 13,900 16,497 5,012 9,175 (13,968) 727,987
Accounting Debit
2,581
Accounting Credit
105,476 1,222 1,128 43,788 2,581 154,196 811 610 45 13,968 169,630
Adjusted Amounts
491,018 8,819 45,024 11,910 22,181 159,457 738,409 628,857 69,935 13,900 16,542 9,175 738,409
162,037 164,618
9 Deposits 10 FHLB Advances 11 Other Borrowed Money 12 Other Liabilities 13 Appraised Equity Capital 14 NetWorth Certificates 15 Net Worth 16 Total Liabilities
5,012 169,630
Reconcilation to final goodwill amount: Goodwill from above Add: Profits booked on Shoreham (PX 569 at KPMG 001667) Add: Unrecoverable NYS facilities tax (PX 569 at KPMG 001667) Final Goodwill Amount
159,457 300 337 160,093
Notes: (1) Deducting the deferred losses of $43.788 million (line 6) from deficit net worth of $13.968 (line 15) produces a book value deficit of $57.756 million. (2) The addition of the appraised equity capital (line 13) and the net worth certificates (line 14) to the net worth deficit (line 15) produces a small positive RAP net worth of $O. 219 million, exclusive of certain minor differences between RAP and GAAP income recognition. Source: KPMG Audit Workpapers (PX 1247 at KPMG 007084, PX 569 at KPMG 001667)
PDX 23
Case 1:95-cv-00468-TCW
Document 204-3
Filed 05/01/2007
Page 6 of 6
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