Heritage Bank of Southern Indiana

Jeffersonville, IN · Cert 34117

FDIC

Q4 2001

$85.8MAssets

$61.1MLoans

$55.2MDeposits

$8.0MEquity

Deposit mix

Executive Summary

Earnings: ROA of 0.72%, down 20 bps year over year; NIM at 2.93%.
Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.10%.
Funding: loans stand at 110.64% of deposits as of Q4 2001.

Return on Assets (YTD, annualized)

0.72%-20 bps YoY

Net Interest Margin (YTD, annualized)

2.93%

Efficiency Ratio (YTD, annualized)

63.87%

Tier 1 Leverage Ratio

n/a

Year to date, annualized, through each quarter.

Metric	Q1 2000	Q2 2000	Q3 2000	Q4 2000	Q1 2001	Q2 2001	Q3 2001	Q4 2001	YoY Δ	Trend
Earnings
Return on Assets	0.83%	0.89%	0.94%	0.92%	0.79%	0.75%	0.80%	0.72%	-20 bps
Return on Equity	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Net Interest Margin	n/a	n/a	n/a	n/a	2.95%	2.94%	3.01%	2.93%	n/a
Efficiency Ratio	n/a	n/a	n/a	n/a	57.87%	61.62%	61.36%	63.87%	n/a
Non-Interest Burden	n/a	n/a	n/a	n/a	1.24%	1.43%	1.48%	1.56%	n/a
Growth
Asset Growth (YoY)	33.33%	34.95%	24.63%	5.80%	9.03%	-0.23%	6.11%	0.97%	-482 bps
Loan Growth (YoY)	45.01%	42.69%	34.08%	16.79%	17.29%	9.08%	12.62%	14.25%	-254 bps
Deposit Growth (YoY)	29.05%	55.30%	31.62%	27.74%	17.83%	-12.70%	7.76%	-0.81%	-2,855 bps
Asset Quality
Nonperforming Loans / Loans	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0 bps
Net Charge-Offs / Loans	n/a	n/a	n/a	n/a	0.16%	0.16%	0.10%	0.10%	n/a
Allowance / Loans	n/a	n/a	n/a	n/a	1.31%	1.37%	1.37%	1.38%	n/a
Allowance Coverage of NPLs	n/a	n/a	n/a	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	n/a	n/a	n/a
Total Risk-Based Capital	n/a	n/a	n/a	n/a	13.91%	14.21%	13.90%	13.57%	n/a
Equity / Assets	n/a	n/a	n/a	n/a	9.11%	9.30%	9.33%	9.32%	n/a
Liquidity & Funding
Loans / Deposits	106.56%	87.12%	102.11%	96.06%	106.07%	108.85%	106.72%	110.64%	+1,458 bps
Liquid Assets / Assets	0.00%	0.00%	0.00%	0.00%	6.05%	0.35%	1.96%	0.30%	+30 bps
CRE / Total Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a