PackageTrendsPeer
Letter portraitLegal landscapeQuarterYTD

Merchants Bank, National Association

La Crescent, MN · Cert 57493

FDIC

Q1 2009

$96.0MAssets
$69.1MLoans
$86.4MDeposits
$8.2MEquity
Loan mix
63%RE $35.1M36%C&I $19.8M1%Consumer $0.7MQ1 2008Q1 2009
Deposit mix
87%Interest-bearing $75.2M13%Noninterest $11.2MQ1 2008Q1 2009

NIM

6.56%Q1 ’076.49%Q1 ’085.29%Q1 ’09+9%-22%

Non-interest income vs. expense

3.33%Q1 ’073.82%Q1 ’083.82%Q1 ’09-3%-19%

Executive Summary

  • Earnings: ROA of 0.98%, down 57 bps year over year; NIM at 3.69%.
  • Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.44%.
  • Funding: loans stand at 79.98% of deposits as of Q1 2009.

Financial Results

Return on Assets (quarter, annualized)

0.98%-57 bps YoY

Net Interest Margin (quarter, annualized)

3.69%-105 bps YoY

Efficiency Ratio (quarter, annualized)

66.35%+673 bps YoY

Tier 1 Leverage Ratio

n/a

Discrete quarter, annualized.

MetricQ1 2008Q2 2008Q3 2008Q4 2008Q1 2009YoY ΔTrend
Earnings
Return on Assets1.55%0.72%0.90%0.94%0.98%-57 bps
Return on Equity15.91%6.69%8.25%9.83%11.49%-442 bps
Net Interest Margin4.75%5.50%4.31%3.83%3.69%-105 bps
Efficiency Ratio59.62%80.78%72.53%66.33%66.35%+673 bps
Non-Interest Burden2.16%4.06%2.75%2.15%1.76%-40 bps
Growth
Asset Growth (YoY)-2.76%44.30%49.50%62.47%72.72%+7,548 bps
Loan Growth (YoY)-6.64%44.78%46.89%62.11%67.40%+7,404 bps
Deposit Growth (YoY)-0.01%44.86%50.79%64.58%78.72%+7,873 bps
Asset Quality
Nonperforming Loans / Loans0.00%0.00%0.00%0.00%0.00%0 bps
Net Charge-Offs / Loans0.02%0.40%-0.01%0.12%0.44%+42 bps
Allowance / Loans1.22%1.29%1.31%1.30%1.35%+13 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 Capital13.29%13.51%13.72%11.55%11.85%-145 bps
Equity / Assets10.09%11.26%10.60%8.53%8.52%-157 bps
Liquidity & Funding
Loans / Deposits85.39%88.71%83.77%83.98%79.98%-540 bps
Liquid Assets / Assets0.00%0.00%0.00%0.00%0.00%0 bps
CRE / Total Capitaln/an/an/an/an/an/an/a