Frontier State Bank

Redondo Beach, CA · Cert 32066

FDIC

Q3 2001

$69.2MAssets

$57.0MLoans

$60.1MDeposits

$8.1MEquity

Deposit mix

Executive Summary

Earnings: ROA of 1.56%, up 99 bps year over year; NIM at 5.82%.
Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.00%.
Funding: loans stand at 94.79% of deposits as of Q3 2001.

Return on Assets (quarter, annualized)

1.56%+99 bps YoY

Net Interest Margin (quarter, annualized)

5.82%

Efficiency Ratio (quarter, annualized)

53.08%

Tier 1 Leverage Ratio

n/a

Discrete quarter, annualized.

Metric	Q4 1999	Q1 2000	Q2 2000	Q3 2000	Q4 2000	Q1 2001	Q2 2001	Q3 2001	YoY Δ	Trend
Earnings
Return on Assets	0.41%	0.28%	0.48%	0.57%	-10.00%	1.53%	1.54%	1.56%	+99 bps
Return on Equity	n/a	n/a	n/a	n/a	n/a	n/a	14.74%	13.96%	n/a
Net Interest Margin	n/a	n/a	n/a	n/a	n/a	5.89%	5.77%	5.82%	n/a
Efficiency Ratio	n/a	n/a	n/a	n/a	n/a	55.05%	53.74%	53.08%	n/a
Non-Interest Burden	n/a	n/a	n/a	n/a	n/a	3.04%	2.93%	2.90%	n/a
Growth
Asset Growth (YoY)	12.11%	9.51%	8.49%	-3.97%	-12.67%	-9.69%	-9.70%	-15.45%	-1,148 bps
Loan Growth (YoY)	-0.30%	-4.41%	-8.20%	-10.01%	-10.42%	-9.29%	2.78%	7.52%	+1,753 bps
Deposit Growth (YoY)	0.24%	-1.76%	-3.18%	-4.30%	-3.95%	-0.83%	-0.97%	-8.74%	-445 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	n/a	n/a	n/a	n/a	n/a	0.00%	0.00%	0.00%	n/a
Allowance / Loans	n/a	n/a	n/a	n/a	n/a	1.76%	1.74%	1.77%	n/a
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	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Total Risk-Based Capital	n/a	n/a	n/a	n/a	n/a	14.78%	15.05%	15.63%	n/a
Equity / Assets	n/a	n/a	n/a	n/a	n/a	10.22%	10.74%	11.67%	n/a
Liquidity & Funding
Loans / Deposits	90.03%	90.19%	84.88%	80.45%	83.96%	82.50%	88.09%	94.79%	+1,434 bps
Liquid Assets / Assets	0.00%	0.00%	0.00%	0.00%	0.00%	0.64%	0.75%	0.83%	+83 bps
CRE / Total Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a