Blanco National Bank, The

Blanco, TX · Cert 3105

FDIC · 4 branches

Q4 2016

Board Package

Performance Trends and Peer Comparison

Part 1Performance Trends, own institution only2

Part 2Peer Comparison, not published for this institution and quartern/a

Basis

Quarter: Q4 2016, the quarter ended December 31, 2016, on both parts.

Income statement: year to date as filed, annualized, on both parts.

Balance sheet: as filed at quarter end.

No peer standings are published for this institution and quarter.

Peer groups below the disclosure floor are suppressed.

Blanco, TX · Cert 3105

FDIC · 4 branches

Q4 2016

$185.2MAssets

$91.7MLoans

$167.6MDeposits

$17.2MEquity

Loan mix

Deposit mix

Market Position · San Antonio-New Braunfels, TX · 2016 SOD (annual) · 0.0% share · #49 of 61 inst. · $0.0B of $102.8B

30.3% Blanco

2.3% Comal

4.1% Gillespie

1.3% Hays

Earnings: ROA of 1.07%, down 6 bps year over year; NIM at 3.84%.
Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.17%.
Capital: tier 1 leverage ratio of 9.94%, up 41 bps from a year ago.
Funding: loans stand at 54.72% of deposits as of Q4 2016.

Return on Assets (YTD, annualized)

1.07%-6 bps YoY

Net Interest Margin (YTD, annualized)

3.84%-6 bps YoY

Efficiency Ratio (YTD, annualized)

75.93%-45 bps YoY

Tier 1 Leverage Ratio

9.94%+41 bps YoY

Year to date, annualized, through each quarter.

Metric	Q1 2015	Q2 2015	Q3 2015	Q4 2015	Q1 2016	Q2 2016	Q3 2016	Q4 2016	YoY Δ	Trend
Earnings
Return on Assets	1.15%	1.14%	1.08%	1.13%	0.67%	1.22%	1.17%	1.07%	-6 bps
Return on Equity	11.60%	11.61%	11.14%	11.58%	6.83%	12.32%	11.68%	10.81%	-77 bps
Net Interest Margin	4.23%	4.10%	4.05%	3.90%	3.88%	3.93%	3.88%	3.84%	-6 bps
Efficiency Ratio	79.94%	77.58%	77.88%	76.38%	83.03%	70.99%	73.96%	75.93%	-45 bps
Non-Interest Burden	3.28%	3.05%	3.03%	2.86%	3.14%	2.64%	2.74%	2.80%	-6 bps
Growth
Asset Growth (YoY)	10.16%	9.81%	10.12%	9.55%	5.52%	6.59%	2.44%	0.40%	-915 bps
Loan Growth (YoY)	5.95%	2.63%	-3.25%	-7.85%	-1.51%	4.05%	1.72%	-1.54%	+631 bps
Deposit Growth (YoY)	9.73%	10.45%	10.64%	10.17%	5.42%	5.87%	1.59%	0.88%	-929 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	0.12%	0.24%	0.16%	0.14%	0.20%	0.13%	0.13%	0.17%	+3 bps
Allowance / Loans	1.31%	1.29%	1.30%	1.34%	1.29%	1.30%	1.31%	1.34%	0 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	9.74%	9.63%	9.59%	9.53%	9.48%	9.74%	9.75%	9.94%	+41 bps
Total Risk-Based Capital	17.35%	15.99%	16.14%	18.35%	17.62%	17.92%	18.71%	19.67%	+132 bps
Equity / Assets	9.81%	9.52%	9.61%	9.67%	9.92%	10.19%	10.36%	9.29%	-37 bps
Liquidity & Funding
Loans / Deposits	62.66%	62.35%	60.27%	56.06%	58.54%	61.28%	60.35%	54.72%	-135 bps
Liquid Assets / Assets	0.65%	0.65%	0.63%	0.61%	0.62%	0.61%	0.62%	0.70%	+9 bps
CRE / Total Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a