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Hereford State Bank

Hereford, TX · Cert 16589

FDIC

Q3 2012

$170.5MAssets
$109.8MLoans
$137.7MDeposits
$16.1MEquity
Loan mix
51%RE $38.8M37%C&I $28.4M12%Consumer $8.9MQ3 2011Q3 2012
Deposit mix
58%Interest-bearing $80.0M42%Noninterest $57.7MQ3 2011Q3 2012

NIM

4.88%Q3 ’104.82%Q3 ’114.23%Q3 ’12+6%-12%

Non-interest income vs. expense

2.51%Q3 ’102.49%Q3 ’112.32%Q3 ’12-5%+1%

Executive Summary

  • Earnings: ROA of 1.85%, down 11 bps year over year; NIM at 4.10%.
  • Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.73%.
  • Funding: loans stand at 79.75% of deposits as of Q3 2012.

Financial Results

Return on Assets (quarter, annualized)

1.85%-11 bps YoY

Net Interest Margin (quarter, annualized)

4.10%-53 bps YoY

Efficiency Ratio (quarter, annualized)

48.74%+331 bps YoY

Tier 1 Leverage Ratio

n/a

Discrete quarter, annualized.

MetricQ3 2011Q4 2011Q1 2012Q2 2012Q3 2012YoY ΔTrend
Earnings
Return on Assets1.96%1.45%1.44%1.49%1.85%-11 bps
Return on Equity20.17%15.15%15.50%15.92%19.57%-60 bps
Net Interest Margin4.63%4.54%4.41%4.13%4.10%-53 bps
Efficiency Ratio45.43%42.02%49.97%49.49%48.74%+331 bps
Non-Interest Burden1.64%1.52%1.87%1.77%1.65%+1 bps
Growth
Asset Growth (YoY)2.29%-6.20%-1.60%6.35%9.66%+737 bps
Loan Growth (YoY)1.32%9.30%4.62%5.30%11.81%+1,049 bps
Deposit Growth (YoY)3.42%-10.15%-4.95%2.56%2.63%-79 bps
Asset Quality
Nonperforming Loans / Loans0.00%0.00%0.00%0.00%0.00%0 bps
Net Charge-Offs / Loans0.10%2.03%0.51%0.06%0.73%+63 bps
Allowance / Loans2.25%2.00%2.14%2.23%1.85%-40 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 Capital14.22%13.33%13.94%13.86%13.64%-58 bps
Equity / Assets9.93%9.25%9.27%9.51%9.43%-50 bps
Liquidity & Funding
Loans / Deposits73.20%75.05%71.21%73.55%79.75%+655 bps
Liquid Assets / Assets4.39%2.07%8.47%1.65%1.49%-291 bps
CRE / Total Capitaln/an/an/an/an/an/an/a