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Keysource Commercial Bank

Durham, NC · Cert 58475

FDIC

Q2 2012

$182.9MAssets
$140.7MLoans
$152.9MDeposits
$21.9MEquity
Loan mix
74%RE $66.5M26%C&I $23.3M0%Consumer $0.4MQ2 2011Q2 2012
Deposit mix
89%Interest-bearing $135.9M11%Noninterest $16.9MQ2 2011Q2 2012

NIM

5.25%Q2 ’104.28%Q2 ’114.32%Q2 ’12-23%+11%

Non-interest income vs. expense

2.64%Q2 ’102.81%Q2 ’113.20%Q2 ’12-16%+44%

Executive Summary

  • Earnings: ROA of -1.91%, down 206 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 5.03%.
  • Funding: loans stand at 92.03% of deposits as of Q2 2012.

Financial Results

Return on Assets (quarter, annualized)

-1.91%-206 bps YoY

Net Interest Margin (quarter, annualized)

3.10%+32 bps YoY

Efficiency Ratio (quarter, annualized)

85.53%+1,179 bps YoY

Tier 1 Leverage Ratio

n/a

Discrete quarter, annualized.

MetricQ2 2011Q3 2011Q4 2011Q1 2012Q2 2012YoY ΔTrend
Earnings
Return on Assets0.15%0.21%0.40%0.48%-1.91%-206 bps
Return on Equity1.59%2.01%3.55%4.19%-16.14%-1,773 bps
Net Interest Margin2.78%3.06%3.28%3.13%3.10%+32 bps
Efficiency Ratio73.74%64.96%75.94%71.73%85.53%+1,179 bps
Non-Interest Burden1.78%1.77%2.32%1.93%2.56%+78 bps
Growth
Asset Growth (YoY)5.22%-6.76%-9.86%-13.43%-15.74%-2,095 bps
Loan Growth (YoY)-3.13%-8.17%-10.55%-14.25%-13.82%-1,069 bps
Deposit Growth (YoY)6.41%-6.69%-12.28%-14.99%-13.78%-2,019 bps
Asset Quality
Nonperforming Loans / Loans0.00%0.00%0.00%0.00%0.00%0 bps
Net Charge-Offs / Loans3.99%0.31%0.07%0.15%5.03%+104 bps
Allowance / Loans1.16%1.41%1.53%1.67%1.64%+48 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 Capital16.29%17.01%17.63%17.57%17.91%+162 bps
Equity / Assets10.03%10.86%11.46%11.65%12.00%+197 bps
Liquidity & Funding
Loans / Deposits92.08%94.82%99.62%94.39%92.03%-4 bps
Liquid Assets / Assets12.78%10.58%8.25%9.71%9.04%-374 bps
CRE / Total Capitaln/an/an/an/an/an/an/a