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Merchants and Farmers Bank

Melville, LA · Cert 13170

FDIC

Q2 2011

$8.2MAssets
$2.5MLoans
$7.3MDeposits
$891KEquity
Loan mix
76%RE $1.7M4%C&I $0.1M20%Consumer $0.4MQ2 2010Q2 2011
Deposit mix
52%Interest-bearing $3.8M48%Noninterest $3.4MQ2 2010Q2 2011

NIM

4.13%Q2 ’093.72%Q2 ’103.00%Q2 ’11-3%-20%

Non-interest income vs. expense

5.05%Q2 ’094.90%Q2 ’106.04%Q2 ’11-9%+9%

Executive Summary

  • Earnings: ROA of -1.71%, down 47 bps year over year; NIM at 2.49%.
  • Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net recoveries of 0.64%.
  • Funding: loans stand at 34.60% of deposits as of Q2 2011.

Financial Results

Return on Assets (YTD, annualized)

-1.71%-47 bps YoY

Net Interest Margin (YTD, annualized)

2.49%-63 bps YoY

Efficiency Ratio (YTD, annualized)

139.66%+2,139 bps YoY

Tier 1 Leverage Ratio

n/a

Year to date, annualized, through each quarter.

MetricQ2 2010Q3 2010Q4 2010Q1 2011Q2 2011YoY ΔTrend
Earnings
Return on Assets-1.24%-1.12%-1.01%-1.39%-1.71%-47 bps
Return on Equity-10.71%-9.74%-8.68%-12.28%-15.32%-462 bps
Net Interest Margin3.12%3.31%3.31%2.65%2.49%-63 bps
Efficiency Ratio118.28%116.89%122.28%125.00%139.66%+2,139 bps
Non-Interest Burden3.87%4.09%4.32%4.03%4.21%+33 bps
Growth
Asset Growth (YoY)-3.39%4.08%-6.83%-0.03%-7.09%-371 bps
Loan Growth (YoY)-7.50%-35.38%-35.00%-38.15%-37.99%-3,050 bps
Deposit Growth (YoY)-2.77%6.09%-6.55%0.91%-6.86%-408 bps
Asset Quality
Nonperforming Loans / Loans0.00%0.00%0.00%0.00%0.00%0 bps
Net Charge-Offs / Loans1.58%1.24%0.07%-0.32%-0.64%-222 bps
Allowance / Loans1.53%2.51%2.68%3.00%3.19%+166 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 Capital38.98%38.69%39.62%38.82%36.34%-264 bps
Equity / Assets11.24%11.37%12.01%10.67%10.88%-35 bps
Liquidity & Funding
Loans / Deposits51.97%37.10%38.53%31.75%34.60%-1,737 bps
Liquid Assets / Assets30.60%30.43%28.87%30.62%24.15%-645 bps
CRE / Total Capitaln/an/an/an/an/an/an/a