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Marathon Bank, The

Winchester, VA · Cert 27411

FDIC

Q2 2007

$440.2MAssets
$371.3MLoans
$354.9MDeposits
$44.5MEquity
Loan mix
92%RE $279.9M8%C&I $24.8M0%Consumer $0.2MQ2 2006Q2 2007
Deposit mix
90%Interest-bearing $319.7M10%Noninterest $35.2MQ2 2006Q2 2007

NIM

6.30%Q2 ’056.77%Q2 ’067.16%Q2 ’07-2%-9%

Non-interest income vs. expense

3.37%Q2 ’053.05%Q2 ’062.93%Q2 ’07-11%-2%

Executive Summary

  • Earnings: ROA of 1.27%, down 21 bps year over year; NIM at 4.07%.
  • Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.08%.
  • Funding: loans stand at 104.62% of deposits as of Q2 2007.

Financial Results

Return on Assets (YTD, annualized)

1.27%-21 bps YoY

Net Interest Margin (YTD, annualized)

4.07%-41 bps YoY

Efficiency Ratio (YTD, annualized)

60.24%+331 bps YoY

Tier 1 Leverage Ratio

n/a

Year to date, annualized, through each quarter.

MetricQ2 2006Q3 2006Q4 2006Q1 2007Q2 2007YoY ΔTrend
Earnings
Return on Assets1.48%1.45%1.50%1.25%1.27%-21 bps
Return on Equity16.14%15.67%16.11%12.97%13.02%-312 bps
Net Interest Margin4.48%4.36%4.35%4.07%4.07%-41 bps
Efficiency Ratio56.93%57.00%55.70%60.50%60.24%+331 bps
Non-Interest Burden2.17%2.13%2.06%2.15%2.13%-4 bps
Growth
Asset Growth (YoY)15.83%8.13%11.25%9.78%-0.09%-1,593 bps
Loan Growth (YoY)5.79%10.39%14.02%6.38%6.67%+88 bps
Deposit Growth (YoY)8.46%0.20%4.05%5.54%-2.38%-1,084 bps
Asset Quality
Nonperforming Loans / Loans0.00%0.00%0.00%0.00%0.00%0 bps
Net Charge-Offs / Loans0.08%0.07%0.06%0.11%0.08%0 bps
Allowance / Loans1.03%1.00%1.03%1.03%0.98%-5 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 Capital12.16%12.44%12.38%12.82%12.79%+63 bps
Equity / Assets8.95%9.56%9.59%9.61%10.12%+116 bps
Liquidity & Funding
Loans / Deposits95.74%102.25%102.38%97.97%104.62%+888 bps
Liquid Assets / Assets5.76%5.91%5.81%5.59%5.71%-6 bps
CRE / Total Capitaln/an/an/an/an/an/an/a