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Mutual Community Savings Bank Inc., SSB

Durham, NC · Cert 30118

FDIC

Q4 2007

$63.9MAssets
$44.0MLoans
$49.8MDeposits
$4.7MEquity
Loan mix
86%RE $20.6M12%C&I $2.9M2%Consumer $0.4MQ4 2006Q4 2007
Deposit mix
77%Interest-bearing $38.4M23%Noninterest $11.4MQ4 2006Q4 2007

NIM

5.63%Q4 ’055.94%Q4 ’066.03%Q4 ’07-16%+23%

Non-interest income vs. expense

4.74%Q4 ’054.82%Q4 ’066.00%Q4 ’07-24%+15%

Executive Summary

  • Earnings: ROA of -1.32%, up 8 bps year over year; NIM at 3.16%.
  • Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.15%.
  • Funding: loans stand at 88.37% of deposits as of Q4 2007.

Financial Results

Return on Assets (quarter, annualized)

-1.32%+8 bps YoY

Net Interest Margin (quarter, annualized)

3.16%+58 bps YoY

Efficiency Ratio (quarter, annualized)

138.06%-1,137 bps YoY

Tier 1 Leverage Ratio

n/a

Discrete quarter, annualized.

MetricQ4 2006Q1 2007Q2 2007Q3 2007Q4 2007YoY ΔTrend
Earnings
Return on Assets-1.40%1.44%-7.18%-1.00%-1.32%+8 bps
Return on Equity-19.28%20.48%-104.41%-16.04%-20.25%-97 bps
Net Interest Margin2.57%2.54%2.76%3.28%3.16%+58 bps
Efficiency Ratio149.43%60.77%290%124.23%138.06%-1,137 bps
Non-Interest Burden4.17%-0.10%5.88%4.29%4.81%+64 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 / Loans0.00%0.00%0.00%0.00%0.00%0 bps
Net Charge-Offs / Loans0.00%-0.02%0.18%0.16%0.15%+15 bps
Allowance / Loans1.32%1.33%1.56%1.73%1.70%+38 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 Capital9.59%10.45%10.56%10.68%11.45%+186 bps
Equity / Assets7.04%7.06%6.65%5.89%7.33%+30 bps
Liquidity & Funding
Loans / Deposits87.51%83.02%82.82%65.23%88.37%+86 bps
Liquid Assets / Assets10.81%16.15%15.06%30.05%15.22%+441 bps
CRE / Total Capitaln/an/an/an/an/an/an/a