director’s report presented by b auer f inancial , i nc . 1.800.388.6686 bauerfinancial

Director’s Report presented by BAUERFINANCIAL, Inc.1.800.388.6686

www.bauerfinancial.com

Director’s Report

Bank OneYour City, USA

OverviewOverview

Director’s Report presented by BAUERFINANCIAL, Inc.www.bauerfinancial.com

Bank One Bank Two Bank Three Bank Four Bank Five Bank Six Bank Seven Bank Eight

Your City, USA Your City, USA Your City, USA Your City, USA Your City, USA Your City, USA Your City, USA Your City, USA

Star Rating **** ZERO **** ** *** ***½ ***** ***

Established 2007 1933 2007 2007 2007 2007 2007 2007

Employees 34 101 22 21 29 14 11 43

Locations 3 9 1 1 1 1 2 2

Sub S No No No No No Yes No No

FDIC Cert # 11111 22222 33333 44444 55555 66666 77777 88888

Current quarter versus 3 most recent year-ends. Current quarter versus

3 most recent year-ends.



Dec. 2008 24.53% 10.08% 26.04% 12.05% 12.26% 11.05% 13.91% 25.78%

Dec. 2009 13.26% 8.41% 19.40% 11.40% 9.64% 9.59% 8.71% 11.28%

Dec. 2010 16.31% 8.04% 16.53% 9.80% 8.80% 9.23% 8.71% 18.12%

June 2011 15.52% 5.40% 16.13% 9.78% 9.59% 8.94% 9.17% 19.39%

0%

5%

10%

15%

20%

25%

30%

Leverage Capital Ratio


3 most recent year-ends.•



Dec. 2008 24.59% 14.05% 30.87% 13.17% 13.24% 13.54% 15.47% 29.48%

Dec. 2009 18.50% 13.22% 27.45% 13.14% 11.95% 12.05% 12.51% 17.97%

Dec. 2010 22.54% 14.10% 28.46% 12.34% 15.53% 12.22% 13.34% 30.02%

June 2011 20.23% 10.33% 21.83% 12.50% 16.29% 12.05% 14.41% 31.98%

0%

5%

10%

15%

20%

25%

30%

35%

Risk-based Capital Ratio





Dec. 2008 $92.320 $297.812 $94.405 $179.637 $143.629 $56.694 $66.322 $159.493

Dec. 2009 $131.284 $279.391 $107.912 $252.501 $192.553 $82.927 $94.410 $212.228

Dec. 2010 $149.470 $260.785 $131.898 $295.292 $217.866 $103.128 $100.246 $205.120

June 2011 $176.239 $254.991 $143.338 $298.139 $217.023 $112.030 $100.743 $171.970

$0

$50

$100

$150

$200

$250

$300

$350

Millions

Assets



Director’s Report presented by BAUERFINANCIAL, INC.www.bauerfinancial.com


Dec. 2008 $59.572 $194.501 $70.763 $153.927 $120.461 $52.942 $54.699 $137.216

Dec. 2009 $97.125 $164.429 $71.169 $217.332 $156.580 $68.146 $72.422 $136.966

Dec. 2010 $111.920 $142.015 $66.525 $255.478 $171.619 $80.675 $70.565 $107.311

June 2011 $133.183 $127.924 $87.360 $246.322 $163.239 $85.302 $71.704 $101.533

$0

$50

$100

$150

$200

$250

$300

Millions

Loans





Dec. 2008 $74.037 $247.219 $69.480 $158.582 $114.051 $47.382 $57.696 $109.891

Dec. 2009 $108.120 $240.929 $86.266 $222.123 $157.039 $75.000 $86.030 $185.320

Dec. 2010 $114.152 $224.063 $109.806 $265.371 $175.671 $93.758 $91.443 $161.556

June 2011 $140.221 $227.201 $120.375 $268.840 $177.286 $101.773 $90.781 $131.947

$0

$50

$100

$150

$200

$250

$300

Millions

Deposits





Dec. 2008 216.2% 119.0% 126.3% 76.5% 94.4% 118.0% 146.3% 121.3%

Dec. 2009 113.6% 118.4% 142.0% 42.4% 72.3% 81.7% 91.6% 121.3%

Dec. 2010 62.8% 89.3% 109.7% 37.6% 66.4% 84.1% 72.5% 87.7%

June 2011 55.9% 223.4% 95.8% 41.9% 69.8% 73.7% 56.9% 54.0%

0%

50%

100%

150%

200%

250%

Efficiency Ratio





Dec. 2008 -5.17% -2.40% -2.13% -0.45% -0.57% -1.65% -2.70% -3.52%

Dec. 2009 -0.82% -2.32% -3.54% 1.29% 0.81% 0.06% -0.10% -8.13%

Dec. 2010 0.91% -0.28% -0.17% 0.36% 0.45% 0.32% 0.47% 0.07%

June 2011 1.34% -3.39% 0.24% -0.59% 0.16% 0.70% 2.29% -3.36%

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

Return on Assets(Tax equivalent for Sub S corporations)





Dec. 2008 -13.75% -20.66% -6.77% -2.64% -3.60% -10.11% -11.57% -11.31%

Dec. 2009 -5.39% -22.97% -15.59% 12.84% 8.49% 0.66% -1.04% -42.43%

Dec. 2010 6.38% -3.11% -0.96% 3.54% 5.04% 3.38% 5.43% 0.55%

June 2011 8.61% -40.72% 1.49% -5.87% 1.76% 7.90% 25.64% -14.20%

-50%-40%-30%-20%-10%

0%10%20%30%

Return on Equity(Tax equivalent for Sub S corporations)

Asset QualityCurrent quarter versus 3 most recent year-ends




Dec. 2008 0.34% 16.24% 0.00% 0.00% 0.59% 0.00% 0.00% 2.50%

Dec. 2009 0.00% 9.26% 7.54% 0.00% 0.38% 0.00% 0.18% 5.69%

Dec. 2010 3.65% 7.74% 0.13% 8.96% 2.28% 0.15% 0.86% 9.93%

June 2011 3.06% 5.66% 0.10% 9.36% 5.31% 1.73% 0.39% 9.53%

0%2%4%6%8%

10%12%14%16%18%

Delinquent Loans as a percent of Gross Loans(90 days or more + nonaccrual)





Dec. 2008 0.00% 3.46% 0.03% 0.00% 0.00% 0.00% 0.00% 1.24%

Dec. 2009 0.16% 5.65% 1.45% 0.00% 0.13% 0.31% 0.05% 8.87%

Dec. 2010 0.32% 2.85% -0.49% 0.90% 0.57% 0.03% 0.16% 0.00%

June 2011 -0.03% 5.39% 0.00% 5.33% 1.99% 0.23% -0.09% 2.65%

-2%

0%

2%

4%

6%

8%

10%

Annualized Chargeoffs minus Recoveries as a percent of Gross Loans

Loan PortfolioLoan Portfolio


0.3%0.1%

48.9%

50.1%

0.0%-0.4%0.1%

Bank One

Residential Construction Commercial R/E Business Farmland Consumer Other

34.3%7.2%

43.4% 9.4%

0.1%

5.1%

0.5%

Bank Two


4.7%0.8%

53.4%

40.2%

0.0%0.8%

0.0%

Bank Three


8.4%

5.1%

45.5%

40.6%0.0%

-0.1%

0.4%

Bank Four


Loan Portfolio - ContinuedLoan Portfolio - Continued


15.9%

10.0%53.7%

20.1%0.0% 0.2%

0.0%

Bank Five


19.1%

2.9%

42.9%

28.2%1.3%

5.7%

0.1%

Bank Six


27.8%8.6%

55.1%

6.1%

1.2%

1.0%

0.3%

Bank Seven


4.6%

4.1%

53.5%

37.8%

0.0%

0.1%

0.0%

Bank Eight


Domestic DepositsDomestic Deposits


20.9%

32.1%

0.2%

11.1%

35.7%

Bank One

Transaction Accts. MMDA Savings CDs under $100,000 Jumbo CDs

9.9%

6.5%

40.7%

28.0%

14.9%

Bank Two


57.0%

28.4%

0.1%1.4%

13.1%

Bank Three


4.5%

65.0%

0.0%

7.0% 23.5%

Bank Four


Domestic Deposits - ContinuedDomestic Deposits - Continued


9.3%15.5%

21.2%29.4%

24.6%

Bank Five


16.5%

0.0%34.7%

28.3%20.4%

Bank Six


6.4%

56.2%

0.7%

6.4%

30.4%

Bank Seven


46.9%20.5%

0.7%

5.2% 26.6%

Bank Eight


Yield

Investments

Yield loans

Cost jumbo cd’s

Cost other iba

Net interest margin


Dec. 2008 3.62% 4.81% 5.00% 3.53% 5.51% N.A. N.A. 4.13%

Dec. 2009 2.48% 4.73% 4.25% 3.42% 5.33% 17.94% N.A. 4.08%

Dec. 2010 3.90% 4.22% 2.00% 2.08% 3.51% N.A. N.A. 0.31%

June 2011 3.94% 3.01% 1.87% 1.94% 2.92% 2.63% N.A. 0.26%

Dec. 2008 6.34% 6.49% 5.85% 6.99% 6.37% 7.21% 6.68% 6.70%

Dec. 2009 5.61% 6.02% 4.84% 6.48% 5.61% 6.44% 6.33% 5.77%

Dec. 2010 5.97% 6.16% 5.57% 6.31% 5.78% 6.68% 6.17% 1.08%

June 2011 6.18% 5.98% 5.56% 5.73% 5.46% 6.54% 6.28% 11.06%

Dec. 2008 4.00% 4.58% 3.44% 3.62% 3.66% 4.28% 3.91% 3.53%

Dec. 2009 3.68% 3.46% 2.48% 2.76% 2.40% 2.95% 3.61% 2.90%

Dec. 2010 2.13% 2.28% 1.24% 2.17% 1.65% 3.18% 2.75% 0.10%

June 2011 1.73% 1.89% 0.89% 1.72% 1.03% 2.15% 2.23% 0.74%

Dec. 2008 2.75% 2.74% 1.74% 4.15% 3.36% 2.23% 3.77% 2.42%

Dec. 2009 2.77% 1.78% 0.96% 3.07% 2.39% 2.41% 2.76% 1.75%

Dec. 2010 1.68% 0.96% 0.59% 1.86% 1.77% 1.84% 1.96% 0.10%

June 2011 1.35% 0.75% 0.45% 1.18% 1.52% 1.65% 1.33% 0.53%

Dec. 2008 3.45% 3.56% 3.94% 3.02% 3.39% 4.72% 3.28% 4.69%

Dec. 2009 2.02% 3.54% 3.02% 3.32% 3.31% 4.48% 2.67% 3.27%

Dec. 2010 3.99% 3.99% 3.30% 3.96% 3.53% 4.55% 3.17% 0.70%

June 2011 4.46% 3.64% 3.28% 4.05% 3.13% 4.29% 3.41% 7.41%

•

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BauerFinancial, Inc.

2655 Le Jeune Rd., Penthouse One

Coral Gables, FL 33134

800.388.6686 Fax: 800.230.9569

www.bauerfinancial.com

[email protected]

director’s report presented by b auer f inancial , i nc . 1.800.388.6686 bauerfinancial

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