Chemical Bank South

Marshall, MI · Cert 20433

FDIC

Q3 2001

$72.7MAssets

$38.5MLoans

$62.6MDeposits

$7.5MEquity

Loan mix

Deposit mix

Executive Summary

Earnings: ROA of 1.20%, up 6 bps year over year; NIM at 4.12%.
Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.14%.
Funding: loans stand at 61.42% of deposits as of Q3 2001.

Return on Assets (YTD, annualized)

1.20%+6 bps YoY

Net Interest Margin (YTD, annualized)

4.12%

Efficiency Ratio (YTD, annualized)

65.18%

Tier 1 Leverage Ratio

n/a

Year to date, annualized, through each quarter.

Metric	Q4 1999	Q1 2000	Q2 2000	Q3 2000	Q4 2000	Q1 2001	Q2 2001	Q3 2001	YoY Δ	Trend
Earnings
Return on Assets	1.02%	1.09%	1.12%	1.14%	1.13%	1.29%	1.20%	1.20%	+6 bps
Return on Equity	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Net Interest Margin	n/a	n/a	n/a	n/a	n/a	4.15%	4.18%	4.12%	n/a
Efficiency Ratio	n/a	n/a	n/a	n/a	n/a	64.04%	65.64%	65.18%	n/a
Non-Interest Burden	n/a	n/a	n/a	n/a	n/a	2.24%	2.40%	2.34%	n/a
Growth
Asset Growth (YoY)	-8.58%	-3.10%	0.39%	-2.79%	-3.33%	-6.69%	-3.69%	3.56%	+635 bps
Loan Growth (YoY)	8.46%	6.48%	5.02%	3.08%	4.16%	7.42%	7.51%	6.18%	+311 bps
Deposit Growth (YoY)	-11.29%	-4.51%	-4.98%	-2.56%	-2.12%	-5.94%	1.08%	2.48%	+504 bps
Asset Quality
Nonperforming Loans / Loans	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0 bps
Net Charge-Offs / Loans	n/a	n/a	n/a	n/a	n/a	0.00%	0.15%	0.14%	n/a
Allowance / Loans	n/a	n/a	n/a	n/a	n/a	1.84%	1.69%	1.71%	n/a
Allowance Coverage of NPLs	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Capital
Tier 1 Leverage Ratio	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Total Risk-Based Capital	n/a	n/a	n/a	n/a	n/a	18.06%	17.77%	17.87%	n/a
Equity / Assets	n/a	n/a	n/a	n/a	n/a	10.49%	10.35%	10.33%	n/a
Liquidity & Funding
Loans / Deposits	55.60%	54.81%	61.07%	59.28%	59.16%	62.60%	64.95%	61.42%	+214 bps
Liquid Assets / Assets	0.00%	0.00%	0.00%	0.00%	0.00%	9.84%	10.09%	7.56%	+756 bps
CRE / Total Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a