Townbank, National Association

Mesquite, TX · Cert 34155

FDIC

Q2 2001

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: Q2 2001, the quarter ended June 30, 2001, on both parts.

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

Balance sheet: as filed at quarter end.

No peer standings are published for this institution and quarter.

Peer groups below the disclosure floor are suppressed.

Mesquite, TX · Cert 34155

FDIC

Q2 2001

$79.5MAssets

$54.9MLoans

$68.9MDeposits

$7.2MEquity

Deposit mix

Earnings: ROA of 2.24%, up 8 bps year over year; NIM at 4.62%.
Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.20%.
Funding: loans stand at 79.70% of deposits as of Q2 2001.

Return on Assets (YTD, annualized)

2.24%+8 bps YoY

Net Interest Margin (YTD, annualized)

4.62%

Efficiency Ratio (YTD, annualized)

65.94%

Tier 1 Leverage Ratio

n/a

Year to date, annualized, through each quarter.

Metric	Q3 1999	Q4 1999	Q1 2000	Q2 2000	Q3 2000	Q4 2000	Q1 2001	Q2 2001	YoY Δ	Trend
Earnings
Return on Assets	2.07%	1.91%	2.09%	2.15%	2.19%	2.11%	1.60%	2.24%	+8 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	n/a	n/a	4.71%	4.62%	n/a
Efficiency Ratio	n/a	n/a	n/a	n/a	n/a	n/a	65.61%	65.94%	n/a
Non-Interest Burden	n/a	n/a	n/a	n/a	n/a	n/a	2.90%	2.84%	n/a
Growth
Asset Growth (YoY)	22.04%	22.67%	14.33%	16.08%	17.71%	19.46%	23.39%	18.27%	+219 bps
Loan Growth (YoY)	33.75%	31.57%	22.88%	27.71%	22.40%	20.26%	22.19%	17.78%	-993 bps
Deposit Growth (YoY)	19.15%	21.74%	10.87%	11.99%	16.14%	17.23%	20.20%	20.07%	+808 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	n/a	n/a	0.04%	0.20%	n/a
Allowance / Loans	n/a	n/a	n/a	n/a	n/a	n/a	1.23%	1.20%	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	n/a	n/a	11.72%	12.24%	n/a
Equity / Assets	n/a	n/a	n/a	n/a	n/a	n/a	8.94%	8.99%	n/a
Liquidity & Funding
Loans / Deposits	71.21%	75.25%	75.19%	81.25%	75.05%	77.20%	76.43%	79.70%	-155 bps
Liquid Assets / Assets	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0 bps
CRE / Total Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a