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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

6.85%Q4 ’075.00%Q4 ’083.70%Q4 ’09-24%-23%

Non-interest income vs. expense

4.94%Q4 ’074.46%Q4 ’084.86%Q4 ’09-13%+162%

Executive Summary

  • Earnings: ROA of -8.04%, down 441 bps year over year; NIM at 1.83%.
  • Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 10.74%.
  • Funding: loans stand at 70.24% of deposits as of Q4 2009.

Financial Results

Return on Assets (quarter, annualized)

-8.04%-441 bps YoY

Net Interest Margin (quarter, annualized)

1.83%-55 bps YoY

Efficiency Ratio (quarter, annualized)

645%+56,119 bps YoY

Tier 1 Leverage Ratio

n/a

Discrete quarter, annualized.

MetricQ4 2008Q1 2009Q2 2009Q3 2009Q4 2009YoY ΔTrend
Earnings
Return on Assets-3.63%-4.98%-0.14%-13.70%-8.04%-441 bps
Return on Equity-38.71%-60.57%-1.63%-172.03%-123.57%-8,486 bps
Net Interest Margin2.38%2.05%1.55%1.94%1.83%-55 bps
Efficiency Ratio83.66%135.98%142.44%118.47%645%+56,119 bps
Non-Interest Burden2.28%3.65%2.97%2.94%5.97%+369 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 / Loans1.26%7.82%0.45%5.12%10.74%+948 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