Lincoln Security Bank

Newport, OR · Cert 34179

FDIC

Q3 2001

$58.0MAssets

$29.4MLoans

$53.0MDeposits

$4.4MEquity

Loan mix

Deposit mix

Executive Summary

Earnings: ROA of 1.14%, up 51 bps year over year; NIM at 4.27%.
Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.10%.
Funding: loans stand at 55.37% of deposits as of Q3 2001.

Return on Assets (quarter, annualized)

1.14%+51 bps YoY

Net Interest Margin (quarter, annualized)

4.27%

Efficiency Ratio (quarter, annualized)

67.06%

Tier 1 Leverage Ratio

n/a

Discrete quarter, annualized.

Metric	Q4 1999	Q1 2000	Q2 2000	Q3 2000	Q4 2000	Q1 2001	Q2 2001	Q3 2001	YoY Δ	Trend
Earnings
Return on Assets	0.75%	0.44%	0.59%	0.63%	0.70%	0.52%	1.06%	1.14%	+51 bps
Return on Equity	n/a	n/a	n/a	n/a	n/a	n/a	14.09%	14.91%	n/a
Net Interest Margin	n/a	n/a	n/a	n/a	n/a	3.84%	4.02%	4.27%	n/a
Efficiency Ratio	n/a	n/a	n/a	n/a	n/a	80.96%	68.29%	67.06%	n/a
Non-Interest Burden	n/a	n/a	n/a	n/a	n/a	2.95%	2.39%	2.50%	n/a
Growth
Asset Growth (YoY)	28.51%	40.02%	36.20%	27.69%	17.28%	16.35%	8.76%	13.77%	-1,392 bps
Loan Growth (YoY)	48.65%	43.46%	25.60%	22.34%	17.06%	10.54%	6.75%	5.72%	-1,662 bps
Deposit Growth (YoY)	30.68%	43.74%	38.91%	29.25%	17.10%	15.39%	3.03%	11.99%	-1,727 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	0.01%	-0.01%	0.10%	n/a
Allowance / Loans	n/a	n/a	n/a	n/a	n/a	1.52%	1.52%	1.45%	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	12.22%	12.62%	12.65%	n/a
Equity / Assets	n/a	n/a	n/a	n/a	n/a	7.35%	7.69%	7.63%	n/a
Liquidity & Funding
Loans / Deposits	62.19%	60.04%	57.80%	58.65%	62.17%	57.52%	59.89%	55.37%	-328 bps
Liquid Assets / Assets	0.00%	0.00%	0.00%	0.00%	0.00%	0.17%	0.01%	0.07%	+7 bps
CRE / Total Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a