First National Bank of Deer River, The

Deer River, MN · Cert 5122

FDIC

Q3 2006

$15.6MAssets

$9.2MLoans

$12.3MDeposits

$2.8MEquity

Loan mix

Deposit mix

NIM

Earnings: ROA of -0.36%, down 73 bps year over year; NIM at -5.36%.
Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.00%.
Funding: loans stand at 74.96% of deposits as of Q3 2006.

Return on Assets (quarter, annualized)

-0.36%-73 bps YoY

Net Interest Margin (quarter, annualized)

-5.36%-1,010 bps YoY

Efficiency Ratio (quarter, annualized)

81.48%-403 bps YoY

Tier 1 Leverage Ratio

n/a

Discrete quarter, annualized.

Metric	Q3 2005	Q4 2005	Q1 2006	Q2 2006	Q3 2006	YoY Δ	Trend
Earnings
Return on Assets	0.37%	0.67%	0.29%	0.44%	-0.36%	-73 bps
Return on Equity	2.41%	4.11%	1.71%	2.55%	-2.00%	-441 bps
Net Interest Margin	4.73%	4.54%	4.69%	4.80%	-5.36%	-1,010 bps
Efficiency Ratio	85.51%	92.04%	90.86%	86.29%	81.48%	-403 bps
Non-Interest Burden	3.94%	4.11%	4.19%	4.04%	-4.87%	-882 bps
Growth
Asset Growth (YoY)	-5.23%	-17.15%	-5.28%	-11.46%	6.28%	+1,151 bps
Loan Growth (YoY)	11.30%	-3.89%	0.99%	-4.97%	-5.90%	-1,720 bps
Deposit Growth (YoY)	-6.19%	-20.25%	-7.02%	-13.90%	0.19%	+638 bps
Asset Quality
Nonperforming Loans / Loans	0.00%	0.00%	0.00%	0.00%	0.00%	0 bps
Net Charge-Offs / Loans	-0.04%	-0.04%	0.00%	0.00%	0.00%	+4 bps
Allowance / Loans	2.65%	2.82%	2.81%	2.80%	2.83%	+18 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	28.31%	29.65%	29.74%	29.70%	28.69%	+38 bps
Equity / Assets	15.84%	16.68%	16.88%	17.39%	18.24%	+240 bps
Liquidity & Funding
Loans / Deposits	79.81%	79.38%	81.23%	83.87%	74.96%	-485 bps
Liquid Assets / Assets	10.80%	12.68%	12.12%	12.42%	12.71%	+190 bps
CRE / Total Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a