PackageTrendsPeer
Letter portraitLegal landscapeQuarterYTD

Northeast National Bank

Mesquite, TX · Cert 26854

FDIC

Q3 2006

$41.8MAssets
$23.8MLoans
$37.7MDeposits
$3.9MEquity
Loan mix
55%RE $7.2M45%C&I $5.8M0%Consumer $0.0MQ3 2005Q3 2006
Deposit mix
68%Interest-bearing $25.6M32%Noninterest $12.1MQ3 2005Q3 2006

NIM

4.91%Q3 ’045.35%Q3 ’056.64%Q3 ’06+7%+24%

Non-interest income vs. expense

5.09%Q3 ’044.94%Q3 ’054.73%Q3 ’06+2%-1%

Executive Summary

  • Earnings: ROA of 1.29%, up 87 bps year over year; NIM at 4.88%.
  • Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.69%.
  • Funding: loans stand at 63.11% of deposits as of Q3 2006.

Financial Results

Return on Assets (YTD, annualized)

1.29%+87 bps YoY

Net Interest Margin (YTD, annualized)

4.88%+95 bps YoY

Efficiency Ratio (YTD, annualized)

77.18%-1,517 bps YoY

Tier 1 Leverage Ratio

n/a

Year to date, annualized, through each quarter.

MetricQ3 2005Q4 2005Q1 2006Q2 2006Q3 2006YoY ΔTrend
Earnings
Return on Assets0.42%0.57%1.10%1.23%1.29%+87 bps
Return on Equity5.41%7.37%13.55%15.09%15.34%+993 bps
Net Interest Margin3.93%4.24%4.74%4.83%4.88%+95 bps
Efficiency Ratio92.34%89.65%78.29%77.34%77.18%-1,517 bps
Non-Interest Burden3.52%3.65%3.43%3.45%3.48%-4 bps
Growth
Asset Growth (YoY)3.26%6.58%-3.13%-2.21%-2.19%-546 bps
Loan Growth (YoY)4.48%4.54%3.42%-12.06%-7.83%-1,231 bps
Deposit Growth (YoY)-4.76%6.63%-6.78%7.13%9.73%+1,449 bps
Asset Quality
Nonperforming Loans / Loans0.00%0.00%0.00%0.00%0.00%0 bps
Net Charge-Offs / Loans0.05%0.04%-0.05%0.92%0.69%+64 bps
Allowance / Loans1.61%1.62%1.69%1.48%1.38%-23 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 Capital17.98%17.54%18.39%19.15%15.37%-261 bps
Equity / Assets7.91%7.88%8.31%8.21%9.21%+130 bps
Liquidity & Funding
Loans / Deposits75.13%64.07%69.83%58.13%63.11%-1,202 bps
Liquid Assets / Assets0.37%0.80%0.48%0.77%1.34%+97 bps
CRE / Total Capitaln/an/an/an/an/an/an/a