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Direct Merchants Credit Card Bank, National Association

Scottsdale, AZ · Cert 33986

FDIC

Q3 2005

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: Q3 2005, the quarter ended September 30, 2005, on both parts.

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

Balance sheet: as filed at quarter end.

Peer group

No peer standings are published for this institution and quarter.

Peer groups below the disclosure floor are suppressed.

Source: FFIEC Call Report (031/041/051), as filed. Dollar figures derived from reported amounts in thousands. Ratios computed by CallReports.ai using published regulatory formulas.

CallReports · callreports.ai · Board PackageGenerated 2026-10-11

Direct Merchants Credit Card Bank, National Association

Scottsdale, AZ · Cert 33986

FDIC

Q3 2005

$194.2MAssets
$1.4MLoans
$2.8MDeposits
$110.3MEquity
Deposit mix
99%Interest-bearing $2.7M1%Noninterest $0.0MQ3 2004Q3 2005

NIM

16.57%Q3 ’036.01%Q3 ’046.13%Q3 ’05-53%+2%

Non-interest income vs. expense

36.53%Q3 ’0351.57%Q3 ’0482.11%Q3 ’05-546%+3%

Executive Summary

  • Earnings: ROA of 17.50%, down 412 bps year over year; NIM at 6.10%.
  • Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 568.62%.
  • Funding: loans stand at 50.63% of deposits as of Q3 2005.

Financial Results

Return on Assets (YTD, annualized)

17.50%-412 bps YoY

Net Interest Margin (YTD, annualized)

6.10%+13 bps YoY

Efficiency Ratio (YTD, annualized)

70.52%+1,097 bps YoY

Tier 1 Leverage Ratio

n/a

Year to date, annualized, through each quarter.

MetricQ3 2004Q4 2004Q1 2005Q2 2005Q3 2005YoY ΔTrend
Earnings
Return on Assets21.62%20.31%15.85%18.19%17.50%-412 bps
Return on Equity30.36%28.49%22.02%26.55%26.36%-400 bps
Net Interest Margin5.97%5.97%5.85%6.30%6.10%+13 bps
Efficiency Ratio59.55%60.74%66.55%68.18%70.52%+1,097 bps
Non-Interest Burden-29.06%-27.59%-19.19%-24.59%-28.23%+84 bps
Growth
Asset Growth (YoY)9.50%5.31%-10.88%-41.46%-43.55%-5,304 bps
Loan Growth (YoY)-35.15%-39.09%-38.87%-98.26%-97.94%-6,280 bps
Deposit Growth (YoY)-43.42%-45.73%-52.30%-40.81%-37.29%+613 bps
Asset Quality
Nonperforming Loans / Loans0.00%0.00%0.00%0.00%0.00%0 bps
Net Charge-Offs / Loans40.84%34.73%9.09%1036%569%+52,779 bps
Allowance / Loans19.05%17.05%15.22%12.35%17.60%-145 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 Capital140.28%113.63%125.93%142.69%169.26%+2,898 bps
Equity / Assets72.04%71.59%72.36%56.85%56.78%-1,526 bps
Liquidity & Funding
Loans / Deposits1544%1621%1851%38.79%50.63%-149,322 bps
Liquid Assets / Assets0.62%0.56%0.57%0.89%0.92%+30 bps
CRE / Total Capitaln/an/an/an/an/an/an/a