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Business Bank, The

Minnetonka, MN · Cert 35487

FDIC

Q2 2013

$192.0MAssets
$151.1MLoans
$132.7MDeposits
$22.2MEquity
Loan mix
85%RE $123.6M14%C&I $20.4M2%Consumer $2.3MQ2 2012Q2 2013
Deposit mix
77%Interest-bearing $102.5M23%Noninterest $30.2MQ2 2012Q2 2013

NIM

4.87%Q2 ’114.62%Q2 ’12-0.58%Q2 ’13+2%-114%

Non-interest income vs. expense

16.14%Q2 ’1122.34%Q2 ’12-1.35%Q2 ’13-54%+181%

Executive Summary

  • Earnings: ROA of -1.42%, down 310 bps year over year; NIM at -0.54%.
  • Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net recoveries of 0.23%.
  • Funding: loans stand at 113.87% of deposits as of Q2 2013.

Financial Results

Return on Assets (quarter, annualized)

-1.42%-310 bps YoY

Net Interest Margin (quarter, annualized)

-0.54%-455 bps YoY

Efficiency Ratio (quarter, annualized)

96.30%+856 bps YoY

Tier 1 Leverage Ratio

n/a

Discrete quarter, annualized.

MetricQ2 2012Q3 2012Q4 2012Q1 2013Q2 2013YoY ΔTrend
Earnings
Return on Assets1.67%1.89%1.95%1.76%-1.42%-310 bps
Return on Equity18.56%24.87%27.31%21.37%-13.78%-3,234 bps
Net Interest Margin4.01%3.66%3.62%3.55%-0.54%-455 bps
Efficiency Ratio87.73%85.80%83.66%86.21%96.30%+856 bps
Non-Interest Burden0.88%0.20%-0.96%-0.10%2.48%+160 bps
Growth
Asset Growth (YoY)29.81%42.76%9.72%18.81%16.53%-1,328 bps
Loan Growth (YoY)38.10%47.99%13.16%21.87%8.34%-2,977 bps
Deposit Growth (YoY)16.99%55.54%12.45%3.58%12.61%-438 bps
Asset Quality
Nonperforming Loans / Loans0.00%0.00%0.00%0.00%0.00%0 bps
Net Charge-Offs / Loans0.03%0.55%0.00%0.22%-0.23%-26 bps
Allowance / Loans0.98%0.57%0.87%1.17%0.02%-96 bps
Allowance Coverage of NPLsn/an/an/an/an/an/an/a
Capital
Tier 1 Leverage Ration/an/an/an/an/an/an/a
Total Risk-Based Capital14.05%11.75%13.24%15.06%12.90%-115 bps
Equity / Assets8.78%6.74%7.58%9.03%11.55%+277 bps
Liquidity & Funding
Loans / Deposits118.37%107.84%117.94%123.01%113.87%-449 bps
Liquid Assets / Assets2.53%4.05%3.10%4.07%6.48%+395 bps
CRE / Total Capitaln/an/an/an/an/an/an/a