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Independence Bank

New Albany, IN · Cert 11338

FDIC

Q3 2008

$297.7MAssets
$243.3MLoans
$210.7MDeposits
$40.1MEquity
Loan mix
91%RE $174.5M9%C&I $16.9M0%Consumer $0.0MQ3 2007Q3 2008
Deposit mix
91%Interest-bearing $191.7M9%Noninterest $19.0MQ3 2007Q3 2008

NIM

6.75%Q3 ’066.49%Q3 ’07-10.12%Q3 ’08-10%-272%

Non-interest income vs. expense

2.32%Q3 ’062.82%Q3 ’07-5.87%Q3 ’08+26%-301%

Executive Summary

  • Earnings: ROA of 1.33%, up 83 bps year over year; NIM at -5.12%.
  • Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net recoveries of 1.83%.
  • Funding: loans stand at 115.46% of deposits as of Q3 2008.

Financial Results

Return on Assets (quarter, annualized)

1.33%+83 bps YoY

Net Interest Margin (quarter, annualized)

-5.12%-810 bps YoY

Efficiency Ratio (quarter, annualized)

68.32%-947 bps YoY

Tier 1 Leverage Ratio

n/a

Discrete quarter, annualized.

MetricQ3 2007Q4 2007Q1 2008Q2 2008Q3 2008YoY ΔTrend
Earnings
Return on Assets0.50%-6.04%0.54%-1.56%1.33%+83 bps
Return on Equity3.60%-46.00%4.29%-12.28%10.25%+665 bps
Net Interest Margin2.98%2.93%2.62%2.84%-5.12%-810 bps
Efficiency Ratio77.79%78.78%81.56%90.02%68.32%-947 bps
Non-Interest Burden2.19%5.49%1.99%2.50%-4.41%-661 bps
Growth
Asset Growth (YoY)1.03%1.73%-0.13%-4.01%-12.51%-1,354 bps
Loan Growth (YoY)-2.80%1.09%-0.38%-1.27%-9.20%-640 bps
Deposit Growth (YoY)-1.13%0.10%9.03%-12.77%-19.95%-1,882 bps
Asset Quality
Nonperforming Loans / Loans0.00%0.00%0.00%0.00%0.00%0 bps
Net Charge-Offs / Loans0.10%0.21%0.82%1.03%-1.83%-192 bps
Allowance / Loans1.11%2.56%2.40%3.12%3.30%+220 bps
Allowance Coverage of NPLsn/an/an/an/an/an/an/a
Capital
Tier 1 Leverage Ration/an/an/an/an/an/an/a
Total Risk-Based Capital14.92%13.88%14.10%13.86%14.39%-54 bps
Equity / Assets13.99%12.27%12.88%12.57%13.48%-51 bps
Liquidity & Funding
Loans / Deposits101.79%108.91%98.23%113.18%115.46%+1,367 bps
Liquid Assets / Assets2.94%2.77%2.98%2.80%3.15%+21 bps
CRE / Total Capitaln/an/an/an/an/an/an/a