Telecom Co-operative Bank

Malden, MA · Cert 26449

FDIC

Q4 2006

$46.5MAssets

$35.8MLoans

$35.4MDeposits

$4.1MEquity

Deposit mix

Executive Summary

Earnings: ROA of 0.12%, up 4 bps year over year; NIM at 2.58%.
Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.00%.
Funding: loans stand at 101.13% of deposits as of Q4 2006.

Return on Assets (quarter, annualized)

0.12%¹+4 bps YoY

Net Interest Margin (quarter, annualized)

2.58%-8 bps YoY

Efficiency Ratio (quarter, annualized)

108.23%+1,102 bps YoY

Tier 1 Leverage Ratio

n/a

Discrete quarter, annualized.

Metric	Q1 2005	Q2 2005	Q3 2005	Q4 2005	Q1 2006	Q2 2006	Q3 2006	Q4 2006	YoY Δ	Trend
Earnings
Return on Assets	0.03%	0.16%¹	0.31%¹	0.08%	0.26%	-0.09%	-0.02%	0.12%¹	+4 bps
Return on Equity	0.38%	1.73%	3.46%	0.97%	3.22%	-1.08%	-0.30%	1.47%	+50 bps
Net Interest Margin	2.77%	2.65%	2.75%	2.66%	2.65%	2.55%	2.67%	2.58%	-8 bps
Efficiency Ratio	98.76%	99.05%	101.53%	97.20%	90.68%	102.84%	99.69%	108.23%	+1,102 bps
Non-Interest Burden	2.73%	2.62%	2.79%	2.58%	2.40%	2.62%	2.66%	2.80%	+21 bps
Growth
Asset Growth (YoY)	-1.48%	4.34%	2.24%	11.35%	10.08%	2.88%	7.72%	-8.94%	-2,029 bps
Loan Growth (YoY)	5.34%	8.40%	16.76%	8.50%	19.44%	16.21%	3.99%	2.05%	-645 bps
Deposit Growth (YoY)	-1.30%	6.35%	1.24%	16.61%	12.88%	3.91%	12.04%	-10.47%	-2,708 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	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0 bps
Allowance / Loans	0.41%	0.41%	0.37%	0.37%	0.35%	0.35%	0.36%	0.36%	-1 bps
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	16.64%	17.50%	16.91%	15.94%	15.95%	16.64%	16.57%	17.68%	+174 bps
Equity / Assets	9.01%	9.02%	8.92%	8.03%	8.07%	8.42%	8.17%	8.80%	+77 bps
Liquidity & Funding
Loans / Deposits	90.43%	90.27%	99.35%	88.72%	95.69%	100.95%	92.22%	101.13%	+1,241 bps
Liquid Assets / Assets	3.46%	3.84%	2.39%	2.74%	1.44%	2.16%	2.02%	1.97%	-78 bps
CRE / Total Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a