Direct Merchants Credit Card Bank, National Association

Scottsdale, AZ · Cert 33986

FDIC

Q3 2005

$194.2MAssets

$1.4MLoans

$2.8MDeposits

$110.3MEquity

Deposit mix

NIM

Earnings: ROA of 17.34%, down 185 bps year over year; NIM at 2.79%.
Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net recoveries of 95.28%.
Funding: loans stand at 50.63% of deposits as of Q3 2005.

Return on Assets (quarter, annualized)

17.34%-185 bps YoY

Net Interest Margin (quarter, annualized)

2.79%-218 bps YoY

Efficiency Ratio (quarter, annualized)

75.58%+1,654 bps YoY

Tier 1 Leverage Ratio

n/a

Discrete quarter, annualized.

Metric	Q3 2004	Q4 2004	Q1 2005	Q2 2005	Q3 2005	YoY Δ	Trend
Earnings
Return on Assets	19.19%	16.37%	15.85%	19.69%	17.34%	-185 bps
Return on Equity	26.50%	22.79%	22.02%	29.57%	30.52%	+402 bps
Net Interest Margin	4.97%	5.63%	5.85%	4.69%	2.79%	-218 bps
Efficiency Ratio	59.04%	64.82%	66.55%	69.96%	75.58%	+1,654 bps
Non-Interest Burden	-27.29%	-21.54%	-19.19%	-23.26%	-24.14%	+315 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 / Loans	0.00%	0.00%	0.00%	0.00%	0.00%	0 bps
Net Charge-Offs / Loans	12.66%	12.84%	9.09%	1622%	-95.28%	-10,794 bps
Allowance / Loans	19.05%	17.05%	15.22%	12.35%	17.60%	-145 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	140.28%	113.63%	125.93%	142.69%	169.26%	+2,898 bps
Equity / Assets	72.04%	71.59%	72.36%	56.85%	56.78%	-1,526 bps
Liquidity & Funding
Loans / Deposits	1544%	1621%	1851%	38.79%	50.63%	-149,322 bps
Liquid Assets / Assets	0.62%	0.56%	0.57%	0.89%	0.92%	+30 bps
CRE / Total Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a