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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

6.98%Q4 ’015.88%Q4 ’025.66%Q4 ’03-6%+11%

Non-interest income vs. expense

2.16%Q4 ’011.98%Q4 ’022.74%Q4 ’03-16%+59%

Executive Summary

  • Earnings: ROA of 0.72%, down 52 bps year over year; NIM at 4.08%.
  • Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 1.10%.
  • Funding: loans stand at 93.48% of deposits as of Q4 2003.

Financial Results

Return on Assets (quarter, annualized)

0.72%-52 bps YoY

Net Interest Margin (quarter, annualized)

4.08%+40 bps YoY

Efficiency Ratio (quarter, annualized)

57.87%+1,322 bps YoY

Tier 1 Leverage Ratio

n/a

Discrete quarter, annualized.

MetricQ4 2002Q1 2003Q2 2003Q3 2003Q4 2003YoY ΔTrend
Earnings
Return on Assets1.24%1.21%1.19%1.26%0.72%-52 bps
Return on Equity14.07%13.37%12.71%13.04%7.03%-704 bps
Net Interest Margin3.67%3.69%4.03%3.88%4.08%+40 bps
Efficiency Ratio44.65%43.94%45.81%43.60%57.87%+1,322 bps
Non-Interest Burden1.39%1.36%1.61%1.44%2.21%+82 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 / Loans0.65%0.66%0.40%0.59%1.10%+45 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