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Merrill Lynch Bank & Trust Company

Plainsboro Township, NJ · Cert 91363

FDIC

Q2 2006

$9.5BAssets
$3.3BLoans
$8.5BDeposits
$859.8MEquity
Deposit mix
99%Interest-bearing $8.5B1%Noninterest $0.1BQ2 2005Q2 2006

NIM

1.82%Q2 ’043.39%Q2 ’054.86%Q2 ’06+15%+16%

Non-interest income vs. expense

0.96%Q2 ’041.08%Q2 ’051.42%Q2 ’06-17%-40%

Executive Summary

  • Earnings: ROA of 3.55%, up 81 bps year over year; NIM at 1.77%.
  • Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.02%.
  • Funding: loans stand at 38.34% of deposits as of Q2 2006.

Financial Results

Return on Assets (YTD, annualized)

3.55%+81 bps YoY

Net Interest Margin (YTD, annualized)

1.77%+24 bps YoY

Efficiency Ratio (YTD, annualized)

21.11%-6 bps YoY

Tier 1 Leverage Ratio

n/a

Year to date, annualized, through each quarter.

MetricQ2 2005Q3 2005Q4 2005Q1 2006Q2 2006YoY ΔTrend
Earnings
Return on Assets2.73%2.88%2.83%3.47%3.55%+81 bps
Return on Equity42.36%43.45%42.17%48.29%45.73%+337 bps
Net Interest Margin1.53%1.66%1.71%1.95%1.77%+24 bps
Efficiency Ratio21.17%21.24%21.89%20.34%21.11%-6 bps
Non-Interest Burden-2.51%-2.68%-3.18%-3.28%-3.52%-101 bps
Growth
Asset Growth (YoY)-10.31%-13.42%-21.33%-15.30%-18.31%-800 bps
Loan Growth (YoY)89.33%82.48%27.84%-4.37%-41.94%-13,127 bps
Deposit Growth (YoY)-11.28%-11.87%-11.59%-9.02%-10.69%+59 bps
Asset Quality
Nonperforming Loans / Loans0.00%0.00%0.00%0.00%0.00%0 bps
Net Charge-Offs / Loans0.00%0.00%0.00%0.02%0.02%+2 bps
Allowance / Loans0.08%0.08%0.10%0.10%0.16%+8 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 Capital16.78%17.15%17.96%19.11%24.19%+741 bps
Equity / Assets6.99%7.24%7.13%7.23%9.03%+204 bps
Liquidity & Funding
Loans / Deposits58.98%55.77%46.20%41.74%38.34%-2,064 bps
Liquid Assets / Assets0.12%0.13%0.12%0.11%0.12%-1 bps
CRE / Total Capitaln/an/an/an/an/an/an/a