First National Bank of Cherokee

Woodstock, GA · Cert 32711

FDIC

Q2 2012

$209.0MAssets

$131.8MLoans

$182.1MDeposits

$315KEquity

Loan mix

Deposit mix

NIM

Earnings: ROA of -4.50%, down 331 bps year over year; NIM at 2.79%.
Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 5.19%.
Funding: loans stand at 72.39% of deposits as of Q2 2012.

Return on Assets (quarter, annualized)

-4.50%-331 bps YoY

Net Interest Margin (quarter, annualized)

2.79%+23 bps YoY

Efficiency Ratio (quarter, annualized)

177.53%+4,313 bps YoY

Tier 1 Leverage Ratio

n/a

Discrete quarter, annualized.

Metric	Q2 2011	Q3 2011	Q4 2011	Q1 2012	Q2 2012	YoY Δ	Trend
Earnings
Return on Assets	-1.18%	-5.35%	-3.00%	-3.93%	-4.50%	-331 bps
Return on Equity	-32.35%	-177.35%	-130.98%	-229%	-640%	-60,739 bps
Net Interest Margin	2.56%	2.62%	2.75%	2.78%	2.79%	+23 bps
Efficiency Ratio	134.40%	244%	156.10%	135.78%	177.53%	+4,313 bps
Non-Interest Burden	3.75%	8.23%	4.83%	4.08%	5.68%	+193 bps
Growth
Asset Growth (YoY)	-2.17%	-1.84%	-10.56%	-11.00%	-14.33%	-1,217 bps
Loan Growth (YoY)	-7.52%	-7.57%	-9.62%	-9.66%	-13.37%	-585 bps
Deposit Growth (YoY)	-1.32%	0.39%	-10.04%	-9.67%	-12.44%	-1,111 bps
Asset Quality
Nonperforming Loans / Loans	0.00%	0.00%	0.00%	0.00%	0.00%	0 bps
Net Charge-Offs / Loans	0.13%	0.67%	2.66%	-0.20%	5.19%	+506 bps
Allowance / Loans	2.64%	2.53%	2.32%	3.55%	3.13%	+49 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	6.36%	4.61%	4.18%	2.93%	0.28%	-609 bps
Equity / Assets	3.67%	2.36%	2.22%	1.22%	0.15%	-352 bps
Liquidity & Funding
Loans / Deposits	73.16%	70.38%	76.09%	72.83%	72.39%	-78 bps
Liquid Assets / Assets	12.52%	15.42%	9.64%	13.76%	13.47%	+95 bps
CRE / Total Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a