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Network Bank USA

Ontario, CA · Cert 23595

FDIC

Q3 2008

Board Package

Performance Trends and Peer Comparison

Part 1Performance Trends, own institution only2
Part 2Peer Comparison, not published for this institution and quartern/a

Basis

Quarter: Q3 2008, the quarter ended September 30, 2008, on both parts.

Income statement: year to date as filed, annualized, on both parts.

Balance sheet: as filed at quarter end.

Peer group

No peer standings are published for this institution and quarter.

Peer groups below the disclosure floor are suppressed.

Source: FFIEC Call Report (031/041/051), as filed. Dollar figures derived from reported amounts in thousands. Ratios computed by CallReports.ai using published regulatory formulas.

CallReports · callreports.ai · Board PackageGenerated 2026-10-11

Network Bank USA

Ontario, CA · Cert 23595

FDIC

Q3 2008

$528.0MAssets
$467.6MLoans
$456.5MDeposits
$18.2MEquity
Loan mix
54%RE $173.6M46%C&I $148.3M0%Consumer $0.1MQ3 2007Q3 2008
Deposit mix
92%Interest-bearing $422.2M8%Noninterest $34.3MQ3 2007Q3 2008

NIM

9.21%Q3 ’068.45%Q3 ’075.97%Q3 ’08-20%-51%

Non-interest income vs. expense

2.19%Q3 ’062.58%Q3 ’074.15%Q3 ’08+13%+62%

Executive Summary

  • Earnings: ROA of -17.12%, down 1,720 bps year over year; NIM at 2.29%.
  • Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 16.18%.
  • Funding: loans stand at 102.44% of deposits as of Q3 2008.

Financial Results

Return on Assets (YTD, annualized)

-17.12%-1,720 bps YoY

Net Interest Margin (YTD, annualized)

2.29%-241 bps YoY

Efficiency Ratio (YTD, annualized)

156.40%+10,410 bps YoY

Tier 1 Leverage Ratio

n/a

Year to date, annualized, through each quarter.

MetricQ3 2007Q4 2007Q1 2008Q2 2008Q3 2008YoY ΔTrend
Earnings
Return on Assets0.08%-0.21%-18.16%-15.68%-17.12%-1,720 bps
Return on Equity0.78%-2.01%-219%-209%-261%-26,157 bps
Net Interest Margin4.70%4.38%2.71%2.30%2.29%-241 bps
Efficiency Ratio52.30%55.18%119.79%134.55%156.40%+10,410 bps
Non-Interest Burden2.35%2.31%3.34%3.21%3.79%+144 bps
Growth
Asset Growth (YoY)13.05%9.13%4.10%-2.83%-14.23%-2,728 bps
Loan Growth (YoY)8.48%7.32%-1.57%-1.48%-13.22%-2,170 bps
Deposit Growth (YoY)17.68%13.58%9.54%2.17%-12.91%-3,059 bps
Asset Quality
Nonperforming Loans / Loans0.00%0.00%0.00%0.00%0.00%0 bps
Net Charge-Offs / Loans0.53%1.79%12.07%10.98%16.18%+1,564 bps
Allowance / Loans2.73%2.15%4.69%5.84%4.60%+187 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 Capital11.14%11.80%8.90%7.88%5.00%-614 bps
Equity / Assets9.12%9.84%6.74%5.87%3.44%-568 bps
Liquidity & Funding
Loans / Deposits102.80%104.73%96.78%96.24%102.44%-37 bps
Liquid Assets / Assets1.49%1.54%1.62%2.82%2.19%+70 bps
CRE / Total Capitaln/an/an/an/an/an/an/a