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Cornerstone Bank

Stamford, CT · Cert 26006

FDIC

Q4 2005

$211.3MAssets
$141.0MLoans
$183.7MDeposits
$18.2MEquity
Loan mix
69%RE $34.4M31%C&I $15.2M0%Consumer $0.2MQ4 2004Q4 2005
Deposit mix
76%Interest-bearing $139.6M24%Noninterest $44.1MQ4 2004Q4 2005

NIM

5.23%Q4 ’035.22%Q4 ’045.93%Q4 ’05+9%+13%

Non-interest income vs. expense

3.46%Q4 ’033.58%Q4 ’045.74%Q4 ’05+6%+105%

Executive Summary

  • Earnings: ROA of -0.25%, down 150 bps year over year; NIM at 4.68%.
  • Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.14%.
  • Funding: loans stand at 76.72% of deposits as of Q4 2005.

Financial Results

Return on Assets (YTD, annualized)

-0.25%-150 bps YoY

Net Interest Margin (YTD, annualized)

4.68%+53 bps YoY

Efficiency Ratio (YTD, annualized)

107.17%+3,909 bps YoY

Tier 1 Leverage Ratio

n/a

Year to date, annualized, through each quarter.

MetricQ4 2004Q1 2005Q2 2005Q3 2005Q4 2005YoY ΔTrend
Earnings
Return on Assets1.25%0.80%0.83%0.96%-0.25%-150 bps
Return on Equity12.93%7.89%8.20%9.35%-2.49%-1,543 bps
Net Interest Margin4.15%4.56%4.56%4.53%4.68%+53 bps
Efficiency Ratio68.08%71.24%68.54%68.53%107.17%+3,909 bps
Non-Interest Burden2.47%3.10%2.92%2.88%5.06%+259 bps
Growth
Asset Growth (YoY)-6.14%5.32%0.25%0.71%-0.14%+599 bps
Loan Growth (YoY)10.30%7.93%5.40%-0.31%4.56%-575 bps
Deposit Growth (YoY)-10.93%2.58%-0.42%3.83%3.65%+1,457 bps
Asset Quality
Nonperforming Loans / Loans0.00%0.00%0.00%0.00%0.00%0 bps
Net Charge-Offs / Loans-0.20%0.09%0.07%0.11%0.14%+33 bps
Allowance / Loans1.64%1.60%1.64%1.66%1.58%-7 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 Capital15.48%14.99%15.48%16.11%12.36%-312 bps
Equity / Assets10.53%9.78%10.08%10.84%8.63%-190 bps
Liquidity & Funding
Loans / Deposits76.05%72.27%70.72%72.50%76.72%+67 bps
Liquid Assets / Assets22.65%20.09%19.02%19.65%17.69%-497 bps
CRE / Total Capitaln/an/an/an/an/an/an/a