Mutual Community Savings Bank Inc., SSB

Durham, NC · Cert 30118

FDIC

Q4 2007

$63.9MAssets

$44.0MLoans

$49.8MDeposits

$4.7MEquity

Loan mix

Deposit mix

NIM

Earnings: ROA of -2.02%, down 105 bps year over year; NIM at 3.55%.
Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.12%.
Funding: loans stand at 88.37% of deposits as of Q4 2007.

Return on Assets (YTD, annualized)

-2.02%-105 bps YoY

Net Interest Margin (YTD, annualized)

3.55%+82 bps YoY

Efficiency Ratio (YTD, annualized)

114.86%-2,288 bps YoY

Tier 1 Leverage Ratio

n/a

Year to date, annualized, through each quarter.

Metric	Q4 2006	Q1 2007	Q2 2007	Q3 2007	Q4 2007	YoY Δ	Trend
Earnings
Return on Assets	-0.97%	1.44%	-2.77%	-2.17%	-2.02%	-105 bps
Return on Equity	-12.77%	20.48%	-39.95%	-32.54%	-29.73%	-1,696 bps
Net Interest Margin	2.74%	2.54%	2.76%	3.27%	3.55%	+82 bps
Efficiency Ratio	137.73%	60.77%	102.74%	108.78%	114.86%	-2,288 bps
Non-Interest Burden	4.06%	-0.10%	2.89%	3.70%	4.33%	+27 bps
Growth
Asset Growth (YoY)	5.22%	8.96%	-15.04%	-3.89%	-28.23%	-3,345 bps
Loan Growth (YoY)	-3.67%	0.67%	-19.85%	-30.64%	-30.46%	-2,678 bps
Deposit Growth (YoY)	0.40%	4.90%	-15.05%	-2.62%	-31.14%	-3,154 bps
Asset Quality
Nonperforming Loans / Loans	0.00%	0.00%	0.00%	0.00%	0.00%	0 bps
Net Charge-Offs / Loans	0.00%	-0.02%	0.07%	0.11%	0.12%	+12 bps
Allowance / Loans	1.32%	1.33%	1.56%	1.73%	1.70%	+38 bps
Allowance Coverage of NPLs	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
Total Risk-Based Capital	9.59%	10.45%	10.56%	10.68%	11.45%	+186 bps
Equity / Assets	7.04%	7.06%	6.65%	5.89%	7.33%	+30 bps
Liquidity & Funding
Loans / Deposits	87.51%	83.02%	82.82%	65.23%	88.37%	+86 bps
Liquid Assets / Assets	10.81%	16.15%	15.06%	30.05%	15.22%	+441 bps
CRE / Total Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a