Drovers & Mechanics Bank, The

York, PA · Cert 7820

FDIC

Q2 2001

$815.6MAssets

$515.7MLoans

$589.1MDeposits

$64.4MEquity

Loan mix

Deposit mix

Executive Summary

Earnings: ROA of 1.18%, up 68 bps year over year; NIM at 3.05%.
Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.12%.
Funding: loans stand at 87.54% of deposits as of Q2 2001.

Return on Assets (YTD, annualized)

1.18%+68 bps YoY

Net Interest Margin (YTD, annualized)

3.05%

Efficiency Ratio (YTD, annualized)

58.02%

Tier 1 Leverage Ratio

n/a

Year to date, annualized, through each quarter.

Metric	Q3 1999	Q4 1999	Q1 2000	Q2 2000	Q3 2000	Q4 2000	Q1 2001	Q2 2001	YoY Δ	Trend
Earnings
Return on Assets	1.20%	1.20%	0.85%	0.50%	0.71%	0.64%	1.11%	1.18%	+68 bps
Return on Equity	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Net Interest Margin	n/a	n/a	n/a	n/a	n/a	n/a	3.12%	3.05%	n/a
Efficiency Ratio	n/a	n/a	n/a	n/a	n/a	n/a	59.37%	58.02%	n/a
Non-Interest Burden	n/a	n/a	n/a	n/a	n/a	n/a	1.52%	1.43%	n/a
Growth
Asset Growth (YoY)	17.93%	20.47%	21.06%	17.08%	11.39%	10.59%	10.54%	8.68%	-840 bps
Loan Growth (YoY)	16.42%	18.36%	19.06%	14.52%	12.90%	10.61%	6.67%	6.44%	-808 bps
Deposit Growth (YoY)	13.17%	10.32%	13.22%	11.15%	11.17%	12.60%	13.70%	9.56%	-159 bps
Asset Quality
Nonperforming Loans / Loans	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0 bps
Net Charge-Offs / Loans	n/a	n/a	n/a	n/a	n/a	n/a	0.08%	0.12%	n/a
Allowance / Loans	n/a	n/a	n/a	n/a	n/a	n/a	1.02%	1.06%	n/a
Allowance Coverage of NPLs	n/a	n/a	n/a	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	n/a	n/a	n/a
Total Risk-Based Capital	n/a	n/a	n/a	n/a	n/a	n/a	11.48%	11.81%	n/a
Equity / Assets	n/a	n/a	n/a	n/a	n/a	n/a	7.64%	7.90%	n/a
Liquidity & Funding
Loans / Deposits	88.86%	90.74%	90.68%	90.12%	90.24%	89.14%	85.08%	87.54%	-257 bps
Liquid Assets / Assets	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	5.79%	4.99%	+499 bps
CRE / Total Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a