PackageTrendsPeer
Letter portraitLegal landscapeQuarterYTD

Farmers & Mechanics National Bank

Frederick, MD · Cert 4842

FDIC

Q2 2007

$2.0BAssets
$1.2BLoans
$1.4BDeposits
$448.8MEquity
Loan mix
77%RE $657.3M22%C&I $190.6M0%Consumer $3.1MQ2 2006Q2 2007
Deposit mix
80%Interest-bearing $1.1B20%Noninterest $0.3BQ2 2006Q2 2007

NIM

4.13%Q2 ’054.69%Q2 ’065.13%Q2 ’07+4%-1%

Non-interest income vs. expense

2.60%Q2 ’052.95%Q2 ’062.69%Q2 ’07+69%-27%

Executive Summary

  • Earnings: ROA of 1.46%, up 29 bps year over year; NIM at 3.25%.
  • Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.08%.
  • Funding: loans stand at 87.01% of deposits as of Q2 2007.

Financial Results

Return on Assets (YTD, annualized)

1.46%+29 bps YoY

Net Interest Margin (YTD, annualized)

3.25%-2 bps YoY

Efficiency Ratio (YTD, annualized)

54.66%-437 bps YoY

Tier 1 Leverage Ratio

n/a

Year to date, annualized, through each quarter.

MetricQ2 2006Q3 2006Q4 2006Q1 2007Q2 2007YoY ΔTrend
Earnings
Return on Assets1.18%1.19%1.20%1.35%1.46%+29 bps
Return on Equity5.31%5.35%5.39%6.07%6.58%+127 bps
Net Interest Margin3.27%3.27%3.26%3.23%3.25%-2 bps
Efficiency Ratio59.03%58.08%57.95%57.92%54.66%-437 bps
Non-Interest Burden1.52%1.47%1.47%1.25%1.11%-41 bps
Growth
Asset Growth (YoY)-0.53%-1.06%0.11%0.92%1.61%+214 bps
Loan Growth (YoY)3.42%5.01%4.30%5.31%2.91%-51 bps
Deposit Growth (YoY)0.92%-1.10%0.14%0.35%0.72%-19 bps
Asset Quality
Nonperforming Loans / Loans0.00%0.00%0.00%0.00%0.00%0 bps
Net Charge-Offs / Loans0.01%0.04%0.04%0.09%0.08%+7 bps
Allowance / Loans0.98%0.94%0.92%0.86%0.80%-19 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 Capital16.79%16.75%16.71%15.68%15.93%-85 bps
Equity / Assets22.08%22.53%22.48%22.11%22.18%+9 bps
Liquidity & Funding
Loans / Deposits85.16%87.78%88.04%87.84%87.01%+185 bps
Liquid Assets / Assets0.76%0.47%0.41%2.91%1.16%+40 bps
CRE / Total Capitaln/an/an/an/an/an/an/a