Southern Community Bank and Trust

Winston-Salem, NC · Cert 34321

FDIC

Q3 2012

$1.4BAssets

$858.3MLoans

$1.1BDeposits

$149.7MEquity

Loan mix

Deposit mix

NIM

Earnings: ROA of 2.74%, up 231 bps year over year; NIM at 2.86%.
Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 2.68%.
Funding: loans stand at 78.50% of deposits as of Q3 2012.

Return on Assets (quarter, annualized)

2.74%¹+231 bps YoY

Net Interest Margin (quarter, annualized)

2.86%-46 bps YoY

Efficiency Ratio (quarter, annualized)

99.48%+3,227 bps YoY

Tier 1 Leverage Ratio

n/a

Discrete quarter, annualized.

Metric	Q3 2011	Q4 2011	Q1 2012	Q2 2012	Q3 2012	YoY Δ	Trend
Earnings
Return on Assets	0.43%	0.50%¹	0.46%	0.55%	2.74%¹	+231 bps
Return on Equity	4.89%	5.49%	4.97%	5.71%	26.52%	+2,162 bps
Net Interest Margin	3.31%	3.26%	3.18%	3.16%	2.86%	-46 bps
Efficiency Ratio	67.21%	73.67%	69.68%	74.82%	99.48%	+3,227 bps
Non-Interest Burden	2.05%	2.33%	2.00%	2.22%	2.86%	+80 bps
Growth
Asset Growth (YoY)	-6.90%	-9.09%	-6.31%	-7.36%	-10.13%	-323 bps
Loan Growth (YoY)	-16.68%	-15.98%	-13.68%	-11.76%	-13.50%	+318 bps
Deposit Growth (YoY)	-6.60%	-12.13%	-7.51%	-9.69%	-11.46%	-486 bps
Asset Quality
Nonperforming Loans / Loans	0.00%	0.00%	0.00%	0.00%	0.00%	0 bps
Net Charge-Offs / Loans	2.04%	2.37%	1.23%	1.54%	2.68%	+64 bps
Allowance / Loans	2.66%	2.53%	2.58%	2.50%	2.23%	-44 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	13.35%	13.85%	14.16%	14.62%	16.79%	+345 bps
Equity / Assets	8.97%	9.25%	9.40%	9.92%	10.79%	+182 bps
Liquidity & Funding
Loans / Deposits	80.36%	80.29%	78.82%	81.05%	78.50%	-185 bps
Liquid Assets / Assets	4.46%	4.47%	6.53%	10.56%	17.47%	+1,301 bps
CRE / Total Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a