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Cardinal State Bank

Durham, NC · Cert 57172

FDIC

Q4 2007

$198.1MAssets
$153.6MLoans
$170.1MDeposits
$20.8MEquity
Loan mix
86%RE $104.7M14%C&I $17.2M0%Consumer $0.4MQ4 2006Q4 2007
Deposit mix
92%Interest-bearing $156.8M8%Noninterest $13.2MQ4 2006Q4 2007

NIM

5.48%Q4 ’056.51%Q4 ’066.48%Q4 ’07+3%-11%

Non-interest income vs. expense

2.99%Q4 ’053.06%Q4 ’063.48%Q4 ’07+2%+17%

Executive Summary

  • Earnings: ROA of 0.77%, up 26 bps year over year; NIM at 3.10%.
  • Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.11%.
  • Funding: loans stand at 90.30% of deposits as of Q4 2007.

Financial Results

Return on Assets (YTD, annualized)

0.77%+26 bps YoY

Net Interest Margin (YTD, annualized)

3.10%-40 bps YoY

Efficiency Ratio (YTD, annualized)

104.79%+2,385 bps YoY

Tier 1 Leverage Ratio

n/a

Year to date, annualized, through each quarter.

MetricQ4 2006Q1 2007Q2 2007Q3 2007Q4 2007YoY ΔTrend
Earnings
Return on Assets0.50%0.61%0.51%1.43%0.77%+26 bps
Return on Equity4.57%6.06%5.03%14.03%7.46%+289 bps
Net Interest Margin3.50%3.42%3.39%3.32%3.10%-40 bps
Efficiency Ratio80.95%97.24%93.32%95.34%104.79%+2,385 bps
Non-Interest Burden2.78%3.32%3.15%3.15%3.26%+48 bps
Growth
Asset Growth (YoY)15.61%12.33%9.67%10.86%4.54%-1,108 bps
Loan Growth (YoY)15.05%3.24%-0.35%2.07%-0.55%-1,560 bps
Deposit Growth (YoY)17.54%13.41%10.34%10.70%5.70%-1,185 bps
Asset Quality
Nonperforming Loans / Loans0.00%0.00%0.00%0.00%0.00%0 bps
Net Charge-Offs / Loans0.15%-0.05%0.00%0.00%0.11%-5 bps
Allowance / Loans1.24%1.10%1.10%1.13%1.29%+4 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 Capital13.34%13.56%13.75%14.42%14.47%+113 bps
Equity / Assets10.01%10.01%10.13%10.71%10.51%+50 bps
Liquidity & Funding
Loans / Deposits95.97%94.28%92.73%92.09%90.30%-568 bps
Liquid Assets / Assets8.70%7.31%7.38%7.74%10.86%+216 bps
CRE / Total Capitaln/an/an/an/an/an/an/a