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Paragon Bank & Trust

Holland, MI · Cert 33126

FDIC

Q4 2009

$106.8MAssets
$67.0MLoans
$95.4MDeposits
$6.8MEquity
Loan mix
69%RE $34.1M31%C&I $15.4M0%Consumer $0.0MQ4 2008Q4 2009
Deposit mix
95%Interest-bearing $90.9M5%Noninterest $4.4MQ4 2008Q4 2009

NIM

6.91%Q4 ’075.45%Q4 ’084.07%Q4 ’09-20%-27%

Non-interest income vs. expense

4.37%Q4 ’074.39%Q4 ’085.16%Q4 ’09-17%+74%

Executive Summary

  • Earnings: ROA of -6.59%, down 498 bps year over year; NIM at 1.90%.
  • Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 6.61%.
  • Funding: loans stand at 70.24% of deposits as of Q4 2009.

Financial Results

Return on Assets (YTD, annualized)

-6.59%-498 bps YoY

Net Interest Margin (YTD, annualized)

1.90%-70 bps YoY

Efficiency Ratio (YTD, annualized)

162.53%+7,252 bps YoY

Tier 1 Leverage Ratio

n/a

Year to date, annualized, through each quarter.

MetricQ4 2008Q1 2009Q2 2009Q3 2009Q4 2009YoY ΔTrend
Earnings
Return on Assets-1.61%-4.98%-2.56%-6.20%-6.59%-498 bps
Return on Equity-16.43%-60.57%-29.98%-76.55%-84.84%-6,841 bps
Net Interest Margin2.60%2.05%1.67%1.85%1.90%-70 bps
Efficiency Ratio90.01%135.98%139.15%132.13%162.53%+7,252 bps
Non-Interest Burden2.29%3.65%3.07%3.20%3.98%+169 bps
Growth
Asset Growth (YoY)3.51%18.09%9.61%0.27%-0.47%-398 bps
Loan Growth (YoY)-3.38%-8.10%-20.37%-21.78%-24.21%-2,083 bps
Deposit Growth (YoY)14.44%32.06%20.62%4.29%3.16%-1,128 bps
Asset Quality
Nonperforming Loans / Loans0.00%0.00%0.00%0.00%0.00%0 bps
Net Charge-Offs / Loans1.17%7.82%4.62%4.97%6.61%+543 bps
Allowance / Loans3.95%4.29%4.22%4.96%5.36%+141 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 Capital9.65%8.07%9.74%8.22%8.31%-134 bps
Equity / Assets9.11%7.44%9.17%6.62%6.40%-271 bps
Liquidity & Funding
Loans / Deposits95.61%77.78%75.16%77.29%70.24%-2,536 bps
Liquid Assets / Assets9.44%23.81%20.74%21.85%26.01%+1,657 bps
CRE / Total Capitaln/an/an/an/an/an/an/a