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First Essex Bank

Lawrence, MA · Cert 90219

FDIC

Q4 2003

$1.7BAssets
$1.2BLoans
$1.3BDeposits
$184.0MEquity
Loan mix
22%RE $98.7M78%C&I $353.5M0%Consumer $0.7MQ4 2002Q4 2003
Deposit mix
87%Interest-bearing $1.1B13%Noninterest $0.2BQ4 2002Q4 2003

NIM

7.25%Q4 ’016.01%Q4 ’025.75%Q4 ’030%+8%

Non-interest income vs. expense

2.10%Q4 ’011.96%Q4 ’022.25%Q4 ’03-13%+21%

Executive Summary

  • Earnings: ROA of 1.09%, down 14 bps year over year; NIM at 3.96%.
  • Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.68%.
  • Funding: loans stand at 93.48% of deposits as of Q4 2003.

Financial Results

Return on Assets (YTD, annualized)

1.09%-14 bps YoY

Net Interest Margin (YTD, annualized)

3.96%+28 bps YoY

Efficiency Ratio (YTD, annualized)

47.86%+403 bps YoY

Tier 1 Leverage Ratio

n/a

Year to date, annualized, through each quarter.

MetricQ4 2002Q1 2003Q2 2003Q3 2003Q4 2003YoY ΔTrend
Earnings
Return on Assets1.24%1.21%1.20%1.22%1.09%-14 bps
Return on Equity14.42%13.37%13.00%13.03%11.41%-301 bps
Net Interest Margin3.69%3.69%3.88%3.87%3.96%+28 bps
Efficiency Ratio43.83%43.94%44.90%44.47%47.86%+403 bps
Non-Interest Burden1.38%1.36%1.49%1.47%1.67%+29 bps
Growth
Asset Growth (YoY)11.44%4.84%4.73%-1.15%-1.60%-1,304 bps
Loan Growth (YoY)7.96%9.26%8.65%8.28%6.98%-97 bps
Deposit Growth (YoY)12.70%5.38%3.10%-4.27%-6.88%-1,957 bps
Asset Quality
Nonperforming Loans / Loans0.00%0.00%0.00%0.00%0.00%0 bps
Net Charge-Offs / Loans0.56%0.66%0.52%0.54%0.68%+12 bps
Allowance / Loans1.27%1.24%1.26%1.26%1.23%-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 Capital10.82%11.58%11.77%12.29%13.18%+236 bps
Equity / Assets8.94%9.17%9.49%9.85%10.52%+158 bps
Liquidity & Funding
Loans / Deposits81.37%84.24%87.88%91.51%93.48%+1,211 bps
Liquid Assets / Assets1.01%1.05%1.01%1.06%1.03%+2 bps
CRE / Total Capitaln/an/an/an/an/an/an/a