Southwest State Bank
Bank Performance Analysis and Strategic Position
for a Community Bank
OVERVIEW
Boyd Dunkin laughed to himself as he looked out his office window. "What a difference the
business cycle makes," he thought. As president and CEO of Southwest State Bank (Southwest),
Boyd had watched his bank struggle through serious problems during the mid- to late-1980s
when many of the bank's agricultural loan customers had difficulty making their loan payments.
He had battled the regulators and even called on stockholders to re-capitalize the bank when it
was forced to write off problem loans. Now, years later, Southwest was a high performance
bank. Several members of the board of directors were pushing him to expand into new
geographic and product markets and to consider buying other community banks.
Southwest is a $53 million community bank located in the small, rural town of Lemars, Arizona,
a community of almost 17,000 people. Two other commercial banks and one credit union
compete in the area: Sun National Bank is a $101 million bank that has four branches in Lemars
and two nearby in the county. People's Bank & Trust is smaller at $45 million but targets
affluent consumers with its trust department and retail products. People's operates with a main
office downtown and a branch at the local mall. The credit union is affiliated with the state
teachers association and boasts almost $29 million in assets. A large national holding company
has just announced its intention to acquire Sun National.
Boyd, his daughter, Rebecca Parks, who serves as chief financial officer, and a small group of
other investors, including most of the bank's directors, own 100 percent of Southwest, with
Boyd's family members controlling 45 percent of the stock. Although Boyd has worked for
Southwest for almost 25 years, the family obtained its controlling interest in 1986 when the
bank's loan problems peaked. Following the change in the area's farm economy, Southwest had
consistently improved its performance, posting record profits in 1993 and 1994. Profits dropped
off somewhat but were still very good in 1995 and 1996. Profits reached record levels again in
1997 and 1998 with the help of converting to a Subchapter S Corporation.
STRATEGIC ISSUES
The fundamental problem facing Southwest’s management is to determine the appropriate
strategic direction for the bank. With its long history in the community, Southwest is wellknown for its agriculture lending, particularly cattle and feedlot loans. One problem is that its
loan portfolio is fast becoming even more concentrated in agricultural loans. At a recent board
meeting, Rebecca reported that the bank's loan portfolio had shifted from 36 percent agriculture
to 78 percent agriculture over the past six years. Although these loans were quite profitable, on
average, there was concern about the lack of diversification.
Due to Southwest’s seasonal loan needs, a general lack of demand from good loan customers
outside agriculture, and Southwest’s concerns about lack of diversification, the bank has a
substantial holding of Fed Funds sold. These short-term overnight investments earn a very low
rate of interest and lower the bank’s ROA. The board continues to express concern with this low
page 2
yielding asset and has put pressure on Dunkin to expand the loan portfolio. Dunkin is concerned
that if the bank gets more aggressive in non-agriculture markets where it has less experience or
expands the agriculture loan portfolio, it will become too risky and potential loan losses may
again put the bank’s entire capital at risk.
Most of the board members believe that Southwest is simply doing what it does very well, which
explains the loan concentration. Efforts to diversify within Lemars have failed because Sun
National and People's Bank & Trust are strong competitors in the consumer market -- the only
other real growth area. Southwest’s consumer loan and deposit base largely reflects its
agriculture customers, who conduct all their business with the bank. If Southwest were to
increase its consumer loans, they would come primarily from competitors and they would likely
be costly to obtain and keep.
To improve its competitive edge, Southwest elected to become a Subchapter S Corporation in
1997. As a direct result, reported taxes almost disappeared by 1998. A Subchapter S
Corporation is treated as a pass-through entity, similar to a partnership, for federal income tax
purposes. It is generally not subject to any federal income taxes at the corporate level. Its
taxable income flows through to shareholders in proportion to their stock ownership, and the
shareholders generally pay federal income taxes on their share of this taxable income. This can
have the effect of reducing an institution’s reported income tax expense and increasing after-tax
earnings.
A vocal group of three directors, also stockholders, recently proposed that Southwest buy
another bank. People's Bank & Trust was mentioned as a possibility, as were two commercial
banks of the same approximate size in neighboring communities. The group suggested that any
acquisition could be financed by omitting Southwest’s dividends. Southwest has paid out over
80 percent of its net income in dividends since 1992, which alternatively could be applied to
such an acquisition. People's Bank & Trust or a similarly non-agriculture bank could provide the
necessary diversification.
Dunkin is unsure as to what strategy is best. To a large extent, he is satisfied with the profits the
bank is currently generating and doesn't want to spend the energy to enter a new market or retool
with new products, such as consumer and trust services. Southwest’s strength is its small size
and strong community focus. Customers know tellers and loan officers by name and are treated
as family members. This atmosphere would likely disappear with any substantive growth.
Alternatively, Dunkin knows that at least one large banking organization will enter Lemars soon
and others may follow, either by buying an existing bank or opening a new branch. To compete,
Southwest will have to decide to offer a broader array of services. It might also need to diversify
its asset base.
Dunkin has indicated that Southwest’s Internet banking services are non-existent. Dunkin
indicated that the bank’s client base “currently does not want or demand Internet banking
services and hence there is no reason to be a leader in this area.” Dunkin also knows that the
trend toward business banking on the Internet is approaching rapidly and that business customers
are beginning to understand the advantages of Internet Cash Management. Internet Cash
management allows business customers can move excess funds on a daily basis to an interest
bearing account (not FDIC-insured). The ability to offer cash management accounts to
Southwest’s customers could make a big difference in retaining some of their best customers.
page 3
The issue facing Southwest State Bank is not unusual in today’s rapidly changing financial
services industry. The bank is currently enjoying record profits in a low interest rate
environment doing what it has always done well, serving the small niche agricultural market.
The real question facing Southwest is how does it continue to profit by doing what has been
successful while investing in new ventures? Spending millions of dollars on Internet banking is
one approach, but will all customers do business this way and if so, when? Southwest’s
profitability and expense control are good and the board of directors is struggling with decisions
regarding additional investment (purchasing another bank or branch) or investing into new
technology, delivery systems and products their existing customer base does not appear to
demand at this time.
ECONOMIC ENVIRONMENT
The Southwest economy has been strong during the past five years. Southwest has performed
above average relative to peers with acceptable amounts of risk. Forecasts for the year 1999 and
beyond are more uncertain. Interest rates are expected to remain steady, and most indicators
suggest that business and consumer spending is good. Inflation, while currently low, will likely
accelerate.
Economic reports indicate that the Southwest has experienced robust economic conditions during
the most recent survey period. Sales were brisk for retailers and service-providers to consumers
and businesses. Manufacturing activity proceeded at a moderate pace, and contacts reported a
mild pickup in export demand. Conditions in the agricultural sector were somewhat weak.
Activity in real estate and construction markets remained at high levels in most areas, and
financial institutions reported strong demand for credit. Wages and prices exhibited limited
movement overall, although increases were noted for some types of workers and some products.
Retail sales were rapid overall, although reports of slight slowing appeared in a few surrounding
states. Automobiles and light trucks sold at a good clip in most areas of Arizona. Agricultural
producers faced somewhat weak demand and lower sales prices. Reports from California,
Washington, and Oregon indicated that farmers were hampered by weak export demand so that
sales prices have remained low. Planting and growing conditions were mixed
Economic reports on banks and other financial institutions, such as venture capital firms,
reported strong demand for credit and relatively good supply conditions.
QUESTIONS
Assume that you are a consultant who has been charged with analyzing Southwest State Bank's
profitability and risk profile. The bank's balance sheet and income statement data for 1996
through 1998 and corresponding data from the bank's Uniform Bank Performance Report are
shown in the following Exhibits. Also, a complete set of profitability and risk ratios for
Southwest for the years 1996 – 1998 are provided in the template. Use this information to
conduct analyses regarding the bank's current profitability, risk exposure, and optimal strategic
direction. Specifically:
page 4
1. Perform a ratio analysis using the ROE model to evaluate Southwest’s profitability
relative to peers for 1998. In what significant ways does Southwest’s profitability
differ from peers?
2. Specifically identify the reasons for higher (lower) interest income and non-interest
income. Do you see these trends continuing?
3. Perform a ratio analysis to evaluate Southwest’s risk position compared to peers' for
the period 1996 through 1998. In what significant ways does Southwest’s risk differ
from peer banks'?
4. Examine Southwest’s liquidity position. What recommendations would you have for
improvement? Discuss both asset and liability liquidity.
Subchapter S Corporations
The Small Business Job Protection Act of 1996 changed the Internal Revenue Code to allow
financial institutions to elect Subchapter S corporation status, beginning in 1997. Banks are
required to indicate on the Call Report whether there is currently in effect an election to file
under Subchapter S. Thrifts have a similar requirement as of March 1998.
The most important IRS requirements to elect and maintain Subchapter S status are:

There can be no more than 75 eligible shareholders and no more than one class of
stock. (In general, shareholders can only be individuals, estates, and certain types of
trusts. Certain retirement plans and charitable organizations will be eligible in 1998.)

All shareholders must consent.

Banks and thrifts converting to Subchapter S status must use the specific charge-off
method for tax purposes rather than the reserve method of accounting for bad debts
and recapture tax bad debt reserves over a period of six years, if the reserve method
had been used prior to conversion. (Note: even though the specific charge-off method
is required for tax purposes, an adequate allowance for loan and lease losses must still
be maintained on the financial statements and Call Reports.) Banks and thrifts are
subject to a built-in gains (BIG) tax, if the aggregate fair market value of assets is
greater than their aggregate adjusted bases on the date of conversion to Subchapter S
status.
[Banks are required to indicate separately on the Call Report in December of each year, the
deferred portion of income taxes reported in net income. For Subchapter S banks, some or all of
their deferred tax assets and liabilities may be eliminated upon conversion to Subchapter S
status; however, deferred taxes related to the BIG tax and the recapture of bad debt reserves must
be recognized.].
A Subchapter S Corporation is treated as a pass-through entity, similar to a partnership, for
federal income tax purposes. It is generally not subject to any federal income taxes at the
corporate level. Its taxable income flows through to its shareholders in proportion to their stock
ownership, and the shareholders generally pay federal income taxes on their share of this taxable
income. This can have the effect of reducing institutions' reported income tax expense and
increasing their after-tax earnings.
page 5
The election of Subchapter S status may result in an increase in shareholders' personal tax
liabilities. Therefore, S corporations typically increase the amount of earnings distributed as
dividends to compensate for higher personal taxes.
page 6
CERT# 123781 DIST/RSSD: 11/
505756
CHARTER #
NA
COUNTY:
Leamers
PAGE 01
12/31/1994
-----------AVERAGE ASSETS ($000)
39212
NET INCOME ($000)
613
NUMBER OF BANKS IN PEER GROUP
907
Southwest State Bank
12/31/1998
LOAN & LEASE ANALYSIS
--------------------NET LOSS TO AVERAGE TOTAL LN&LS
0.56
0.14
12/31/1996
-------------------
12/31/1995
-------------------
---------------
48896
43558
39394
37943
876
783
494
486
865
855
866
867
EARNINGS AND PROFITABILITY
BANK
PEER 014
BANK
PEER 018
-------------------------------- ---------- -------PERCENT OF AVERAGE ASSETS:
INTEREST INCOME (TE)
7.22
7.67
7.29
7.10
- INTEREST EXPENSE
3.32
3.56
2.34
2.81
NET INTEREST INCOME (TE)
3.90
4.11
4.95
4.29
+ NONINTEREST INCOME
0.54
0.67
0.46
0.60
MEMO: FEE INCOME
0.08
0.23
0.07
0.17
- NON-INTEREST EXPENSE
2.59
2.74
3.20
2.79
- PROVISION: LOAN&LEASE LOSSES
0.04
0.21
0.32
0.10
= PRETAX OPERATING INCOME (TE)
1.80
1.84
2.53
2.00
+ REALIZED GAINS/LOSSES SECS
0.00
0.02
0.10
-0.02
= PRETAX NET OPERATING INC(TE)
1.80
1.86
2.43
1.98
NET OPERATING INCOME
1.79
1.27
1.56
1.27
ADJUSTED NET OPERATING INCOME
1.79
1.32
1.56
1.30
ADJUSTED NET INCOME
1.21
1.28
1.64
1.35
NET INCOME
1.79
1.27
1.56
1.27
MARGIN ANALYSIS:
AVG EARNING ASSETS TO AVG ASSETS
95.63
94.15
AVG INT-BEARING FUNDS TO AVG AST
74.78
78.14
INT INC (TE) TO AVG EARN ASSETS
7.62
7.54
INT EXPENSE TO AVG EARN ASSETS
2.45
2.98
NET INT INC-TE TO AVG EARN ASSET
5.17
4.56
SUMMARY RATIOS
12/31/1997
-------------------
LEAMERS, AZ
PCT
---
BANK
PEER 018 PCT
------- -------- ---
BANK
PEER 018 PCT
BANK
---
PEER 018
------- -------- --- ------- --------
19
7.77
7.78
50
8.02
7.74
68
8.11
7.76
30
3.36
3.55
40
3.31
3.53
38
3.22
3.49
36
4.41
4.23
60
4.71
4.20
79
4.90
4.26
48
0.37
0.66
28
0.38
0.64
29
0.43
0.60
32
0.03
0.21
14
0.07
0.19
39
0.07
0.16
46
2.76
2.70
50
2.91
2.66
61
3.16
2.73
27
0.09
0.19
51
0.24
0.16
76
0.20
0.14
45
1.93
2.00
52
1.94
2.02
53
1.97
1.99
66
0.00
0.01
80
0.00
0.00
77
-0.01
0.00
44
1.93
2.01
51
1.94
2.03
53
1.96
1.99
88
1.80
1.33
89
1.25
1.30
54
1.28
1.27
85
1.77
1.39
86
1.25
1.35
51
1.23
1.31
39
1.28
1.39
45
1.31
1.39
50
1.30
1.35
88
1.80
1.33
89
1.25
1.30
54
1.28
1.27
91.35
93.75
13
95.60
93.93
77
94.74
94.07
58
95.47
94.19
73.71
77.39
23
72.82
77.41
24
71.49
77.56
15
72.04
77.60
7.90
8.18
30
8.13
8.28
43
8.46
8.23
63
8.50
8.23
3.64
3.80
36
3.52
3.77
34
3.49
3.76
33
3.37
3.71
4.27
4.39
44
4.61
4.50
54
4.97
4.47
75
5.13
4.53
0.09
0.27
46
0.21
0.24
66
0.41
0.22
79
0.43
0.20
----
-
-
-
page 7
EARNINGS COVERAGE OF NET LOSS(X)
NA
26.42
LN&LS ALLOWANCE TO NET LOSSES(X)
NA
12.01
LN&LS ALLOWANCE TO TOTAL LN&LS
0.96
1.65
NON-CURRENT LN&LS TO GROSS LN&LS
0.50
0.92
LIQUIDITY
--------NET NON CORE FUND DEPENDENCE
3.87
1.96
NET LOANS & LEASES TO ASSETS
52.61
51.01
CAPITALIZATION
-------------TIER ONE LEVERAGE CAPITAL(***)
13.77
10.62
CASH DIVIDENDS TO NET INCOME
65.25
53.08
RETAIN EARNS TO AVG TOTAL EQUITY
4.14
5.76
40.91
12.23
75
17.88
15.26
62
9.03
17.40
46
8.64
18.33
7.73
5.67
60
3.51
6.58
46
1.93
7.50
33
1.94
8.28
0.71
1.49
04
0.73
1.49
05
0.77
1.54
05
0.81
1.60
0.00
1.04
0.22
0.96
0.00
1.03
0.00
1.01
-52.31
3.96
01
-32.98
4.23
05
-46.16
3.08
01
-17.86
-0.25
44.48
55.14
20
49.97
56.05
35
55.69
53.47
55
57.08
51.89
11.36
10.60
68
12.57
10.72
70
13.79
10.79
80
14.47
10.80
79.91
63.64
74
89.40
59.27
83
80.97
55.49
80
72.02
57.18
2.94
4.15
31
1.42
4.95
21
1.68
5.32
20
2.52
5.03
GROWTH RATES
-----------ASSETS
14.62
7.39
83
10.89
5.64
84
6.80
5.95
68
-1.29
6.17
0.29
2.68
TIER ONE CAPITAL(***)
2.97
4.93
28
1.46
5.26
22
1.68
5.95
18
2.50
5.70
4.07
6.18
NET LOANS & LEASES
2.01
6.52
33
-0.49
10.55
12
4.19
9.44
37
7.10
9.29
1.33
9.71
SHORT TERM INVESTMENTS
41.63
13.07
66
-1.06
8.70
45
65.40
-9.99
90
34.74
32.60
30.59
-19.75
SHORT TERM NON CORE FUNDING
20.68
4.62
68
26.83
14.91
64
NA
NA
99
NA
NA
NA
NA
(***) TIER ONE CAPITAL AFTER 12/31/93 EXCLUDES FASB 115 NET UNREALIZED HOLDING GAIN/LOSS ON AVAILABLE -FOR-SALE
SECURITIES.
CERT# 123781 DIST/RSSD: 11/
505756
CHARTER #
NA
COUNTY:
Leamers
PAGE 02
Southwest State Bank
INCOME STATEMENT - REVENUES AND EXPENSES ($000)
-
--
------------
------INTEREST AND FEES ON LOANS
-1.86
INCOME FROM LEASE FINANCING
NA
FULLY TAXABLE
-1.86
TAX-EXEMPT
NA
ESTIMATED TAX BENEFIT
-
LEAMERS, AZ
PERCENT CHANGE
1 YEAR
-
12/31/1998
12/31/1997
12/31/1996
12/31/1995
12/31/1994
----------
----------
----------
----------
----------
2323
2367
2377
2276
2167
0
0
0
0
0
2323
2367
2377
2276
2167
0
0
0
0
0
0
0
0
0
0
page 8
INCOME ON LOANS & LEASES (TE)
-1.86
2323
2367
2377
2276
2167
TAX-EXEMPT SECURITIES INCOME
0.00
ESTIMATED TAX BENEFIT
OTHER SECURITIES INCOME
3.88
INVESTMT INTEREST INCOME (TE)
3.80
6
6
6
8
11
1
321
1
309
1
462
2
539
3
481
328
316
469
549
495
0
0
0
0
0
878
701
313
254
197
0
0
0
0
0
3529
3384
3159
3079
2859
389
274
258
228
188
1231
1187
1042
988
728
0
0
0
0
0
4
4
3
4
3
NA
NA
0
0
0
0
0
0
0
0
TOTAL INTEREST EXPENSE
10.85
1624
1465
1303
1220
919
NET INTEREST INCOME (TE)
-0.73
NONINTEREST INCOME
62.35
ADJUSTED OPERATING INC (TE)
4.18
1905
1919
1856
1859
1940
263
162
150
162
182
2168
2081
2006
2021
2122
NON-INTEREST EXPENSE
5.23
PROVISION: LOAN & LEASE LOSSES
-47.37
PROV: ALLOCATED TRANSFER RISK
PRETAX OPERATING INCOME (TE)
5.01
1267
1204
1147
1198
1253
20
38
94
75
-124
0
881
0
839
0
765
0
748
0
993
0
0
0
0
0
0
0
0
-3
-40
881
839
765
745
953
4
1
0
5
55
1
0
56
270
1
0
271
257
2
0
259
337
3
0
340
INTEREST ON DUE FROM BANKS
NA
INT ON FED FUNDS SOLD & RESALES
25.25
TRADING ACCOUNT INCOME
NA
TOTAL INTEREST INCOME (TE)
4.28
INTEREST ON TIME DEP OVER $100M
41.97
INTEREST ON ALL OTHER DEPOSITS
3.71
INT ON FED FUNDS PURCH & REPOS
NA
INT BORROWED MONEY (+NOTE OPT)
0.00
INT ON MORTGAGES & LEASES
NA
INT ON SUB NOTES & DEBENTURES
NA
REALIZED G/L HLD-TO-MATURITY SEC
NA
REALIZED G/L AVAIL-FOR-SALE SEC
NA
PRETAX NET OPERATING INC (TE)
5.01
APPLICABLE INCOME TAXES
CURRENT TAX EQUIV ADJUSTMENT
OTHER TAX EQUIV ADJUSTMENTS
APPLICABLE INCOME TAXES (TE)
page 9
NET OPERATING INCOME
11.88
876
783
494
486
613
NET EXTRAORDINARY ITEMS
NET INCOME
11.88
0
876
0
783
0
494
0
486
0
613
CASH DIVIDENDS DECLARED
0.00
RETAINED EARNINGS
112.05
700
700
400
350
400
176
83
94
136
213
CERT# 123781 DIST/RSSD: 11/
505756
CHARTER #
NA
COUNTY:
Leamers
PAGE 03
NONINTEREST INCOME & EXPENSES
12/31/1994
---------------------------------------DEPOSIT SERVICE CHARGES
131
OTHER NONINTEREST INCOME
51
NONINTEREST INCOME
182
MEMO: FEE INCOME
27
PERSONNEL EXPENSE
921
OCCUPANCY EXPENSE
78
OTHER OPER EXP(INCL INTANGIBLES)
254
TOTAL OVERHEAD EXPENSE
1253
DOMESTIC BANKING OFFICES (#)
1
ASSETS PER DOMESTIC OFFICE
40133
NUMBER OF EQUIVALENT EMPLOYEES
13
Southwest State Bank
NONINTEREST INCOME AND EXPENSE ($000) AND YIELDS
12/31/1998
12/31/1997
-------------------
LEAMERS, AZ
12/31/1996
-------------------
12/31/1995
-------------------
---------------
115
121
122
126
148
41
28
36
263
162
150
162
39
12
28
26
868
802
854
854
80
77
79
84
319
325
214
260
1267
1204
1147
1198
1
1
1
1
53777
46916
42307
39615
14
14
14
14
PERCENT OF AVERAGE ASSETS
BANK
PEER 014
BANK
PEER 018
------------------------------- ---------- -------PERSONNEL EXPENSE
1.78
1.47
2.35
1.43
OCCUPANCY EXPENSE
0.16
0.35
0.20
0.34
OTHER OPER EXP(INCL INTANGIBLES)
0.65
0.92
0.65
1.02
TOTAL OVERHEAD EXPENSE
2.59
2.74
3.20
2.79
OVERHEAD LESS NONINTEREST INCOME
2.05
2.07
2.73
2.19
PCT
---
BANK
PEER 018 PCT
------- -------- ---
BANK
PEER 018 PCT
BANK
---
PEER 018
------- -------- --- ------- --------
82
1.84
1.45
78
2.17
1.45
92
2.25
1.46
08
0.18
0.36
10
0.20
0.35
15
0.22
0.35
25
0.75
0.89
39
0.54
0.86
15
0.69
0.93
46
2.76
2.70
50
2.91
2.66
61
3.16
2.73
51
2.39
2.03
66
2.53
2.02
77
2.73
2.13
----
page 10
OTHER INCOME & EXPENSE RATIOS:
AVG PERSONNEL EXP PER EMPL($000)
70.85
32.12
ASSETS PER EMPLOYEE ($MILLION)
3.09
2.28
MARGINAL TAX RATE
34.00
YIELD ON OR COST OF:
TOTAL LOANS & LEASES (TE)
9.82
8.92
TOTAL LOANS
9.82
8.89
REAL ESTATE**
9.47
8.61
COMMERCIAL TIME, DEMAND, OTH**
10.00
8.83
INSTALLMENT**
10.18
9.81
CREDIT CARD PLANS
12.95
13.82
MEMO:
AGRICULTURAL LNS IN ABOVE
9.52
8.29
TOTAL INVESTMENT SECURITIES (TE)
4.76
6.15
US TREAS, AGCY & OTH DEBT
4.70
5.80
STATE & POLITICAL SUB (BOOK)
5.70
5.86
STATE & POLITICAL SUB (TE)
7.32
8.46
EQUITY SECURITIES
0.00
5.42
INTEREST-BEARING BANK BALANCES
NA
4.82
FEDERAL FUNDS SOLD & RESALES
3.92
4.04
TOTAL INT-BEARING DEPOSITS
3.13
3.57
TRANSACTION ACCOUNTS
2.19
2.48
MONEY MARKET DEPOSIT ACCOUNTS
3.24
2.94
OTHER SAVINGS DEPOSITS
2.67
2.97
TIME DEPS OVER $100M
3.74
4.10
ALL OTHER TIME DEPOSITS
3.11
4.26
62.00
36.66
99
57.29
35.21
96
61.00
34.36
97
61.00
33.19
3.84
2.62
89
3.35
2.52
83
3.02
2.46
77
2.83
2.37
34.00
34.00
34.00
34.00
9.91
9.43
74
10.03
9.53
74
10.18
9.62
74
10.30
9.64
9.91
9.41
74
10.03
9.51
75
10.18
9.60
75
10.30
9.61
8.63
9.02
30
10.07
9.12
85
9.69
9.23
72
9.72
9.19
11.17
9.50
93
9.92
9.64
69
10.45
9.67
83
10.63
9.79
9.40
10.38
22
10.75
10.37
66
10.80
10.41
65
10.91
10.40
13.32
13.52
71
12.94
13. 68
80
11.83
15.37
77
10.92
13.94
9.85
9.07
78
9.95
9.19
78
10.31
9.26
84
7.68
9.18
6.77
6.42
78
5.90
6.57
08
5.70
6.51
05
5.64
6.53
6.80
6.13
94
6.38
6.52
43
7.69
6.26
95
5.66
6.25
5.00
5.23
41
5.00
5.41
40
4.95
5.53
32
5.59
5.79
5.87
7.56
11
5.87
7.83
13
5.81
7.99
11
7.05
8.33
0.00
6.22
24
0.00
6.26
43
0.00
6.07
48
0.00
6.03
0.00
5.57
44
NA
5.60
57
NA
5.71
57
NA
5.87
5.45
5.27
79
5.53
5.37
75
5.44
5.26
75
5.77
5.79
4.51
4.56
41
4.62
4.55
59
4.64
4.53
63
4.47
4.47
2.50
2.59
50
2.67
2.60
62
2.73
2.61
65
2.50
2.72
4.54
3.64
91
4.57
3.53
95
4.72
3.38
98
4.49
3.45
2.94
3.07
52
2.95
3.12
50
3.06
3.12
65
3.05
3.20
5.52
5.50
45
4.95
5.45
19
6.25
5.48
91
5.12
5.45
4.83
5.54
04
5.47
5.55
47
4.72
5.56
04
4.94
5.44
45
NA
5.18
44
NA
5.12
45
NA
5.59
58
3.70
5.96
77
2.54
5.76
75
3.50
5.95
99
NA
5.05
99
NA
6.11
99
NA
8.03
39
4.62
4.58
58
4.63
4.55
61
4.46
4.50
FEDERAL FUNDS PURCHASED & REPOS
NA
5.01
NA
4.24
OTHER BORROWED MONEY
3.99
5.81
3.61
4.83
SUBORDINATED NOTES & DEBENTURES
NA
9.33
NA
7.67
ALL INTEREST-BEARING FUNDS
4.51
4.60
3.13
3.59
**BANKS UNDER $300 MILLION IN TOTAL ASSETS REPORT
SYSTEMS.
T H I S LO A N D E T A I L ( BY T Y P E ) U S IN G T H E I R O W N I N TE R N AL C A T E G O RI Z A T I ON
page 11
CERT# 123781 DIST/RSSD: 11/
505756
CHARTER #
NA
COUNTY:
Leamers
PAGE 04
Southwest State Bank
BALANCE SHEET - ASSETS, LIABILITIES AND CAPITAL ($000)
LEAMERS, AZ
PERCENT CHANGE
----------ASSETS:
QTR
1 YEAR
--------------REAL ESTATE LOANS
1.06
6.70
COMMERCIAL LOANS
32.89
-7.41
INDIVIDUAL LOANS
6.36
-10.90
AGRICULTURAL LOANS
1.61
-1.24
OTHER LN&LS IN DOMESTIC OFFICES
72.73
171.43
LN&LS IN FOREIGN OFFICES
NA
NA
GROSS LOANS & LEASES
2.14
1.99
LESS: UNEARNED INCOME
LN&LS ALLOWANCE & ATRR
1.19
-1.16
NET LOANS & LEASES
2.17
2.01
U.S.TREASURY & AGENCY SECURITIES
13.04
26.69
MUNICIPAL SECURITIES
1.67
0.00
FOREIGN DEBT SECURITIES
NA
NA
ALL OTHER SECURITIES
0.00
0.00
INTEREST-BEARING BANK BALANCES
95.24
NA
FEDERAL FUNDS SOLD & RESALES
TRADING ACCOUNT ASSETS
NA
NA
TOTAL INVESTMENTS
TOTAL EARNING ASSETS
NONINT CASH & DUE FROM BANKS
18.68
25.57
ACCEPTANCES
PREMISES, FIX ASSTS, CAP LEASES
75.38
79.06
OTHER REAL ESTATE OWNED
19.82
-19.82
INV IN UNCONSOLIDATED SUBS
OTHER ASSETS
59.39
-20.86
TOTAL ASSETS
7.36
14.62
AVERAGE ASSETS DURING QUARTER
7.40
13.95
LIABILITIES:
------------
--12/31/1998
12/31/1997
12/31/1996
12/31/1995
12/31/1994
1
----------
----------
----------
----------
----------
11859
11114
9127
8273
8326
900
972
1388
1359
1209
662
743
718
743
719
-
10648
10782
12502
12415
11060
-
19
7
10
8
4
NA
NA
NA
NA
NA
24088
23618
23745
22798
21318
0
170
0
172
0
183
0
184
0
204
23918
23446
23562
22614
21114
5980
4720
5016
9598
10287
122
122
123
123
159
NA
NA
NA
NA
NA
2
2
2
2
2
100
0
0
0
0
21190
0
16400
0
11560
0
5500
0
6400
0
27394
51312
2124 4
44690
16701
40263
15223
37837
16848
37962
1380
1099
990
870
1158
0
342
0
191
0
186
0
200
0
131
174
217
271
0
45
-
0
569
0
719
0
597
0
708
0
837
-
53777
46916
42307
39615
401 33
52204
45815
41157
38586
39556
----
-
-
-
-
-
page 12
DEMAND DEPOSITS
20.74
19.16
ALL NOW & ATS ACCOUNTS
14.42
14.01
MONEY MARKET DEPOSIT ACCOUNTS
11.12
19.17
OTHER SAVINGS DEPOSITS
0.18
5.80
TIME DEP UNDER $100M
4.88
9.58
CORE DEPOSITS
7.19
15.28
TIME DEP OF $100M OR MORE
20.67
20.58
DEPOSITS IN FOREIGN OFFICES
NA
NA
TOTAL DEPOSITS
9.34
16.18
FEDERAL FUNDS PURCHASED & RESALE
OTHER BORROWINGS INCL MAT < 1 YR
23.08
28.74
MEMO: SHT TERM N. CORE FUNDING
20.70
20.68
OTHER BORROWINGS WITH MAT > 1 YR
NA
NA
ACCEPTANCES & OTHER LIABILITIES
57.40
9.28
TOTAL LIABILITIES (INCL MORTG)
8.44
16.17
SUBORDINATED NOTES & DEBENTURES
NA
NA
ALL COMMON & PREFERRED CAPITAL
0.53
3.68
TOTAL LIABILITIES & CAPITAL
7.36
14.62
MEMORANDA:
OFFICER, SHAREHOLDER LOANS (#)
OFFICER, SHAREHOLDER LOANS ($)
20.69
27.91
NON-INVESTMENT ORE
19.82
-19.82
HELD-TO-MATURITY SECURITIES
NA
NA
AVAILABLE-FOR-SALE-SECURITIES
12.79
26.01
ALL BROKERED DEPOSITS
NA
NA
CERT# 123781 DIST/RSSD: 11/
505756
CHARTER #
NA
COUNTY:
Leamers
PAGE 06
12/31/1994
-----------ASSETS, PERCENT OF AVG ASSETS
BANK
PEER 018
------------------------------- -------TOTAL LOANS
55.82
50.20
LEASE FINANCING RECEIVABLES
0.00
0.13
7482
6279
5305
5060
5057
4084
3582
3213
3311
3064
15317
12853
11072
9588
9184
1697
1604
1573
1475
1624
10488
9571
9794
9357
9593
39068
33889
30957
28791
28522
8332
6910
5350
5053
6156
0
0
0
0
0
47400
40799
36307
33844
34678
0
112
0
87
0
167
0
0
0
98
8444
6997
5517
NA
NA
0
0
0
0
0
259
237
149
156
107
47771
41123
36623
34000
34883
0
0
0
0
0
6006
5793
5684
5615
5250
53777
46916
42307
39615
40133
0
385
0
301
0
329
0
327
0
232
174
217
271
0
45
0
0
0
0
2022
6104
4844
5141
9723
8426
0
0
0
0
0
Southwest State Bank
BALANCE SHEET - PERCENTAGE COMPOSITION OF ASSETS AND LIABILITIES
12/31/1998
12/31/1997
------------------BANK
PEER 014 PCT
------- -------- ---
12/31/1996
------------------BANK
PEER 018 PCT
------- -------- ---
-
-
-
-
LEAMERS, AZ
12/31/1995
------------------BANK
-
PEER 018 PCT
--------------BANK
---
PEER 018
------- -------- --- ------- --------
47.87
56.66
24
54.29
55.76
45
58.61
53.42
63
57.21
52.41
0.00
0.22
77
0.00
0.21
81
0.00
0.21
81
0.00
0.15
----
page 13
LESS:
LN&LS ALLOWANCE & ATRR
0.51
0.86
NET LOANS & LEASES
55.31
49.47
INTEREST-BEARING BANK BALANCES
0.00
0.67
FEDERAL FUNDS SOLD & RESALES
13.20
2.98
TRADING ACCOUNT ASSETS
0.00
0.03
HELD-TO-MATURITY SECURITIES
7.34
24.47
AVAILABLE-FOR-SALE SECURITIES
18.38
15.49
TOTAL EARNING ASSETS
94.23
93.11
NONINT CASH & DUE FROM BANKS
2.98
3.59
PREMISES, FIX ASSTS & CAP LEASES
0.28
1.34
OTHER REAL ESTATE OWNED
0.18
0.17
ACCEPTANCES & OTHER ASSETS
2.33
1.80
SUBTOTAL
5.77
6.90
TOTAL ASSETS
100.00
100.01
STANDBY LETTERS OF CREDIT
0.00
0.26
LIABILITIES, PERCENT OF AVG ASST
-------------------------------DEMAND DEPOSITS
14.37
10.73
ALL NOW & ATS ACCOUNTS
8.10
14.50
MONEY MARKET DEPOSIT ACCOUNTS
22.46
9.79
OTHER SAVINGS DEPOSITS
4.06
9.74
TIME DEP < $100M
24.51
33.74
CORE DEPOSITS
73.50
78.50
TIME DEP OF $100M OR MORE
12.73
8.39
DEPOSITS IN FOREIGN OFFICES
NA
NA
TOTAL DEPOSITS
86.23
86.89
FEDERAL FUNDS PURCH & REPOS
0.00
1.38
OTHER BORROWINGS INCL < 1 YR
0.21
0.37
MEMO: SHT TERM N. CORE FUNDING
NA
NA
OTHER BORROWINGS > 1 YR
0.00
0.30
0.34
0.86
04
0.40
0.84
08
0.46
0.85
12
0.50
0.86
47.52
56.02
24
53.89
55.13
46
58.1 5
52.79
64
56.71
51.70
0.89
0.75
82
0.00
0.54
51
0.00
0.60
51
0.00
0.52
34.05
4.67
99
28.59
3.46
99
15.37
3.44
97
11.98
3.17
0.00
0.00
99
0.00
0.01
99
0.00
0.01
99
0.00
0.02
0.00
7.67
36
0.00
9.02
31
0.00
10.43
31
4.20
17.59
12.24
23.75
19
11.87
24.67
26
20.50
25.61
44
21.38
19.97
94.70
92.86
82
94.35
92.83
75
94.02
92.88
69
94.27
92.97
2.61
3.43
25
2.76
3.62
23
2.77
3.69
21
2.79
3.61
0.45
1.47
11
0.43
1.43
17
0.48
1.37
20
0.51
1.35
0.42
0.10
94
0.59
0.11
95
0.48
0.11
94
0.02
0.14
1.81
2.14
54
1.86
2.02
55
2.25
1.95
71
2.41
1.92
5.29
7.13
17
5.65
7.17
24
5.98
7.11
30
5.74
7.02
99.99
99.99
100.00
100.00
100.00
99.99
100.01
99.99
0.00
0.24
25
0.00
0.26
41
0.00
0.27
39
0.00
0.28
13.55
10.86
78
12.75
10.96
73
12.93
10.79
76
13.56
10.88
8.22
12.99
18
8.30
13.21
21
8.06
13.36
16
7.44
13.71
27.87
8.08
98
26.05
7.97
99
25.37
7.99
99
23.41
8.42
3.34
7.63
15
3.58
7.83
14
3.98
8.29
16
3.92
8.78
20.10
34.34
05
22.44
34.82
07
23.74
35.55
09
24.66
35.18
73.07
73.89
40
73.12
74.78
31
74.10
75.98
28
73.00
76.97
13.82
11.42
70
12.64
11.03
71
10.93
10.32
65
12.04
9.51
NA
NA
99
NA
NA
99
NA
NA
99
NA
NA
86.89
85.31
54
85.76
85.81
37
85.03
86.30
30
85.04
86.47
0.00
0.90
53
0.00
1.16
51
0.00
1.02
52
0.00
1.14
0.20
0.42
70
0.25
0.54
77
0.30
0.41
82
0.30
0.36
13.8 2
11.04
71
12.89
11.19
75
10.99
10.47
66
NA
NA
0.00
1.47
60
0.00
0.73
84
0.00
0.57
87
0.00
0.43
page 14
ACCEPTANCES & OTHER LIABILITIES
0.49
0.67
TOTAL LIABILITIES(INCL MORTG)
86.93
89.62
SUBORDINATED NOTES & DEBENTURES
0.00
0.00
ALL COMMON & PREFERRED CAPITAL
13.07
10.38
TOTAL LIABILITIES & CAPITAL
100.00
99.99
MEMO: ALL BROKERED DEPOSITS
0.00
0.27
INSURED BROKERED DEP
0.00
0.24
0.77
0.86
48
0.65
0.83
28
0.61
0.85
23
0.60
0.78
87.87
88.96
30
86.66
89.08
24
85.93
89.15
18
85.94
89.18
0.00
0.00
99
0.00
0.00
99
0.00
0.00
99
0.00
0.00
12.13
11.04
70
13.34
10.92
75
14.07
10.85
81
14.06
10.82
99.99
100.00
100.00
99.99
100.01
100.00
100.00
100.00
0.00
0.37
87
0.00
0.35
87
0.00
0.26
89
0.00
0.25
0.00
0.36
87
0.00
0.33
88
0.00
0.25
89
0.00
0.24
CERT# 123781 DIST/RSSD: 11/
505756
CHARTER #
NA
COUNTY:
Leamers
PAGE 07
CHANGE: CREDIT ALLOWANCE ($000)
12/31/1994
-----------------------------------------BEGINNING BALANCE
154
GROSS CREDIT LOSSES
52
RECOVERIES
176
NET CREDIT LOSSES
-124
PROVISION FOR CREDIT LOSS
-124
OTHER ADJUSTMENTS
50
ENDING BALANCE
204
NET ATRR CHARGE-OFFS
NA
OTHER ATRR CHANGES (NET)
NA
AVERAGE TOTAL LOANS & LEASES
22068
Southwest State Bank
ANALYSIS OF CREDIT ALLOWANCE AND LOAN MIX
12/31/1998
12/31/1997
-------------------
LE A M E R S , AZ
12/31/1996
-------------------
12/31/1995
-------------------
---------------
172
183
184
204
22
49
98
130
0
0
3
35
22
49
95
95
20
38
94
75
0
0
0
0
170
172
183
184
NA
NA
NA
NA
NA
NA
NA
NA
23439
23608
23348
22094
ANALYSIS RATIOS
BANK
PEER 014
BANK
PEER 018
--------------------- ---------- -------LOSS PROVISION TO AVERAGE ASSETS
0.04
0.21
0.32
0.10
RECOV TO PRIOR PER CREDIT LOSS
0.00
37.16
107.98
47.68
PCT
---
BANK
PEER 018 PCT
------- -------- ---
BANK
PEER 018 PCT
BANK
---
PEER 018
------- -------- --- ------- --------
27
0.09
0.19
51
0.24
0.16
76
0.20
0.14
04
0.00
39.29
13
2.31
42.92
13
67.31
45.62
----
page 15
NET LOSS TO AVERAGE TOTAL LN&LS
0.56
0.14
GROSS LOSS TO AVERAGE TOT LN&LS
0.24
0.34
RECOVERIES TO AVERAGE TOT LN&LS
0.80
0.20
0.09
0.27
46
0.21
0.24
66
0.41
0.22
79
0.43
0.20
0.09
0.41
27
0.21
0.38
51
0.42
0.37
69
0.59
0.36
0.00
0.14
07
0.00
0.14
12
0.01
0.15
18
0.16
0.16
LN&LS ALLOWANCE TO TOTAL LN&LS
0.96
1.65
LN&LS ALLOWANCE TO NET LOSSES(X)
NA
12.01
LN&LS ALL TO NONACCRUAL LN&LS(X)
NA
2.55
0.71
1.49
04
0.73
1.49
05
0.77
1.54
05
0.81
1.60
7.73
5.67
60
3.51
6.58
46
1.93
7.50
33
1.94
8.28
NA
2.32
NA
2.39
NA
2.28
NA
2.34
EARN COVER OF NET LN&LS LOSS (X)
NA
26.42
40.91
12.23
75
17.88
15.26
62
9.03
17.40
46
8.64
18.33
0.13
0.04
88
0.00
0.03
79
0.68
0.02
96
-0.05
0.03
-
0.00
0.36
41
0.37
0.30
78
0.26
0.28
71
0.78
0.30
-
1.00
0.85
78
0.13
0.77
41
-0.13
0.70
07
-0.41
0.53
-
NA
0.50
98
NA
0.84
98
NA
0.37
98
NA
0.14
0.53
3.64
74
0.50
3.79
86
1.08
3.30
88
0.00
1.73
NA
0.58
99
NA
5.17
99
NA
-0.32
99
NA
-0.33
NA
0.04
98
NA
0.00
99
NA
0.00
98
NA
0.03
0.00
-0.03
96
0.00
-0.01
96
1.15
-0.01
98
-0.09
0.04
0.61
0.06
97
0.00
0.04
83
0.00
0.03
84
0.00
0.03
NA
0.05
98
NA
-0.01
99
NA
0.13
99
NA
0.04
0.61
0.06
97
0.00
0.04
83
0.00
0.03
85
0.00
0.03
NA
0.06
99
NA
0.05
99
NA
-0.05
99
NA
-0.11
0.00
0.05
91
0.00
0.05
93
0.00
0.03
92
0.00
0.01
0.00
0.16
80
0.19
0.15
85
0.55
0.23
88
0.60
0.25
NET LOSSES BY TYPE OF LN&LS
--------------------------REAL ESTATE LOANS
0.02
0.03
COMMERCIAL AND INDUSTRIAL LOANS
0.91
0.17
INSTALLMENT LOANS
0.77
0.47
LEASE FINANCING
NA
-0.29
MEMORANDA:
CREDIT CARD PLANS
0.00
2.00
LOANS TO FINANCE COMML REAL EST
NA
1.24
CONSTRUCTION & LAND DEV
NA
0.00
SECURED BY FARMLAND
0.12
0.04
SINGLE & MULTI FAMILY MORTGAGE
0.15
0.02
HOME EQUITY LOANS
NA
0.17
1-4 FAMILY NON-REVOLVING
0.15
0.02
MULTIFAMILY LOANS
NA
-0.01
NON-FARM NON-RESIDENTIAL MTG
0.00
0.03
BANKS W/AGRI LOANS OVER 5%:
AGRICULTURAL LOANS
0.74
0.06
CERT# 123781 DIST/RSSD: 11/
505756
Southwest State Bank
-
-
-
LEAMERS, AZ
page 16
CHARTER #
PAGE 07A
NA
COUNTY:
Leamers
ANALYSIS OF CREDIT ALLOWANCE AND LOAN MIX
12/31/1998
12/31/1994
-----------LOAN MIX, % AVERAGE GROSS LN&LS
BANK
PEER 018
--------------------------------- -------CONSTRUCTION & DEVELOPMENT
0.00
2.03
1 - 4 FAMILY RESIDENTIAL
12.25
28.60
HOME EQUITY LOANS
0.00
0.63
OTHER REAL ESTATE LOANS
26.60
21.90
FARMLAND
22.38
8.51
MULTIFAMILY
0.00
0.83
NON-FARM NON-RESIDENTIAL
4.23
12.56
TOTAL REAL ESTATE
38.85
52.53
FINANCIAL INSTITUTION LOANS
0.00
0.04
AGRICULTURAL LOANS
52.30
14.78
COMMERCIAL & INDUSTRIAL LOANS
5.75
15.16
LOANS TO INDIVIDUALS
3.03
15.92
CREDIT CARD LOANS
0.64
0.55
MUNICIPAL LOANS
0.00
0.73
ACCEPTANCES OF OTHER BANKS
0.00
0.07
FOREIGN OFFICE LOANS & LEASES
0.00
0.00
ALL OTHER LOANS
0.06
0.51
LEASE FINANCING RECEIVABLES
0.00
0.26
SUPPLEMENTAL:
LOANS TO FINANCE COMML REAL EST
0.00
0.09
MEMORANDUM (% OF AVG TOT LOANS):
LOAN & LEASE COMMITMENTS
18.37
11.33
LOANS SOLD DURING THE QUARTER
NA
NA
OFFICER, SHAREHOLDER LOANS
1.05
2.41
OFFICER, SHAREH LOANS TO ASSETS
0.58
1.23
OTHER REAL ESTATE OWNED % ASSETS
12/31/1997
------------------BANK
PEER 014 PCT
------- -------- ---
12/31/1996
------------------BANK
PEER 018 PCT
------- -------- ---
12/31/1995
------------------BANK
PEER 018 PCT
--------------BANK
---
PEER 018
------- -------- --- ------- --------
0.00
2.44
12
0.00
2.41
23
0.00
2.33
23
0.00
2.04
10.48
27.72
11
10.71
28.55
21
11.12
28.61
22
12.46
2 8.88
0.00
0.70
55
0.00
0.64
72
0.00
0.57
72
0.00
0.58
38.03
23.14
93
31.18
22.60
86
26.86
22.25
75
25.28
22.06
34.36
9.64
98
27.04
9.09
95
22.36
8.95
88
21.16
8.69
0.00
0.80
39
0.00
0.86
55
0.00
0.83
55
0.00
0.82
3.67
12.70
12
4.14
12.65
31
4.50
12.47
33
4.12
12.55
48.50
53.30
39
41.89
53.56
40
37.98
53.19
33
37.75
52.97
0.00
0.03
96
0.00
0.08
98
0.00
0.06
97
0.00
0.05
43.71
15.05
92
49.89
14.35
90
52.85
14.31
93
53.11
14.29
4.80
14.82
06
5.06
15.08
08
5.80
15.15
11
5.86
15.21
2.95
15.27
02
3.10
15.37
02
3.27
15.80
02
3.24
16.05
0.82
0.89
84
0.85
0.52
90
0.82
0.64
89
0.72
0.53
0.00
0.61
39
0 .0 0
0.63
45
0.00
0.61
43
0.00
0.62
0.00
0.02
97
0.00
0.02
97
0.00
0.02
96
0.00
0.04
0.00
0.00
99
0.00
0.00
99
0.00
0.00
99
0.00
0.00
0.04
0.53
23
0.05
0.54
32
0.09
0.47
43
0.04
0.49
0.00
0.39
77
0.00
0.38
81
0.00
0.40
81
0.00
0.29
0.00
0.12
84
0.00
0.13
87
0.00
0.12
89
0.00
0.09
22.61
13.23
89
19.77
12.24
85
19.49
13.30
85
17.84
10.86
NA
NA
99
NA
NA
99
NA
NA
99
NA
NA
1.62
2.40
50
1.27
2.42
47
1.40
2.41
50
1.46
2.53
0.72
1.33
44
0.64
1.35
48
0.78
1.29
53
0 .83
1.32
----
page 17
-------------------------------CONSTRUCTION & LAND DEVELOPMENT
0.00
0.01
FARMLAND
0.00
0.02
1-4 FAMILY
0.18
0.04
MULTIFAMILY
0.00
0.01
NON-FARM-NON-RESID.
0.00
0.08
FOREIGN OFFICES
NA
NA
SUBTOTAL
0.18
0.16
DIRECT AND INDIRECT INV.
0.00
0.00
TOTAL
0.18
0.17
MORTGAGE SERVICING % ASSETS
MORTGAGES SERV. UNDER GNMA
0.00
2.14
MORTGAGES SERVICED UNDER FHLMC
0.00
1.47
MORTGAGES SERVICED UNDER FNMA
0.00
0.88
OTHER MORTGAGE SERVICING
0.00
0.15
TOTAL
0.00
4.64
0.00
0.01
94
0.00
0.01
96
0.00
0.01
94
0.00
0.01
0.42
0.01
99
0.59
0.02
99
0.48
0.02
99
0.00
0.02
0.00
0.03
63
0.00
0.03
73
0.00
0.02
75
0.02
0.03
0.00
0.00
98
0.00
0.00
99
0.00
0.00
98
0.00
0.00
0.00
0.04
68
0.00
0.05
76
0.00
0.05
72
0.00
0.07
NA
NA
99
NA
NA
99
NA
NA
99
NA
NA
0.42
0.09
94
0.59
0.10
96
0.48
0.11
94
0.02
0.13
0.00
0.00
98
0.00
0.00
98
0.00
0.00
98
0.00
0.01
0.42
0.10
94
0.59
0.11
95
0.48
0.11
94
0.02
0.14
0.00
0.02
99
0.00
0.63
99
0.00
0.86
99
0.00
1.10
0.00
1.31
94
0.00
1.52
98
0.00
1. 4 3
98
0.00
1.27
0.00
0.17
98
0.00
0.55
99
0.00
0.92
99
0.00
0.87
0.00
0.27
96
0.00
0.27
96
0.00
0.63
96
0.00
0.15
0.00
1.77
90
0.00
2.97
95
0.00
3.84
94
0.00
3.39
CERT# 123781 DIST/RSSD: 11/
505756
CHARTER #
NA
COUNTY:
Leamers
PAGE 08
NON-CURRENT LN&LS ($000)
12/31/1994
----------------------------------90 DAYS AND OVER PAST DUE
106
TOTAL NONACCRUAL LN&LS
0
TOTAL NON-CURRENT LN&LS
106
0
0
0
Southwest State Bank
ANALYSIS OF PAST DUE, NONACCRUAL & RESTRUCTURED LOANS & LEASES
12/31/1998
-------------------
12/31/1 997
-------------------
12/31/1996
-------------------
LEAMERS, AZ
12/31/1995
---------------
0
51
0
0
0
0
0
0
0
51
0
0
RESTRUCTURED LN&LS 90+ DAYS P/D
0
0
0
0
RESTRUCTURED LN&LS NONACCRUAL
0
0
0
0
CURRENT RESTRUCTURED LN&LS
0
0
0
0
174
217
271
0
ALL OTHER REAL ESTATE OWNED
45
---
page 18
% OF NON-CURR LN&LS BY LN TYPE*
BANK
PEER 018
--------------------------------- -------REAL ESTATE LNS-90+ DAYS P/D
0.00
0.30
-NONACCRUAL
0.00
0.69
-TOTAL
0.00
0.99
BANK
PEER 014 PCT
------- -------- ---
BANK
PEER 018 PCT
------- -------- ---
BANK
PEER 018 PCT
BANK
PEER 018
------- -------- --- ------- --------
0.00
0.39
49
0.35
0.32
74
0.00
0.34
60
0.00
0.31
0.00
0.62
42
0.00
0.63
58
0.00
0.63
57
0.00
0.63
0.00
1.00
24
0.35
0.96
52
0.00
0.97
38
0.00
0.94
0.00
0.36
52
0.10
0.30
70
0.00
0.35
57
0.00
0.30
0.00
0.77
38
0.00
0.72
54
0.00
0.87
52
0.00
0.91
0.00
1.13
22
0.10
1.02
47
0.00
1.21
34
0.00
1.21
INSTALLMENT LNS-90+ DAYS P/D
0.92
0.35
-NONACCRUAL
0.00
0.28
-TOTAL
0.92
0.63
0.00
0.45
40
0.00
0.43
47
0.00
0.46
45
0.00
0.43
0.00
0.46
53
0.00
0.42
65
0.00
0.40
65
0.00
0.34
0.00
0.90
23
0.00
0.86
35
0.00
0.86
33
0.00
0.78
CREDIT CARD PLANS-90+ DAYS P/D
0.00
0.85
-NONACCRUAL
0.00
0.08
-TOTAL
0.00
0.93
0.00
2.45
81
0.00
2.74
90
0.00
1.25
91
0.00
1.14
0.00
0.05
98
0.00
0.10
98
0.00
0.61
98
0.00
0.05
0.00
2.50
80
0.00
2.84
89
0.00
1.86
91
0.00
1.19
NA
0.63
98
NA
0.46
99
NA
0.37
99
NA
0.17
NA
0.51
99
NA
0.81
99
NA
0.80
99
NA
0.22
NA
1.15
98
NA
1.27
98
NA
1.17
98
NA
0.39
0.00
0.40
23
0.22
0.34
59
0.00
0.36
25
0.00
0.32
0.00
0.64
18
0.00
0.62
29
0.00
0.6 8
27
0.00
0.68
0.00
1.04
04
0.22
0.96
28
0.00
1.03
09
0.00
1.01
0.00
0.47
81
0.00
0.30
81
0.00
0.39
82
0.00
0.30
0.00
0.91
74
0.00
0.82
77
0.00
1.21
75
0.00
1.14
0.00
1.38
64
0.00
1.12
66
0.00
1.60
66
0.00
1.43
COML, OTHER LNS-90+ DAYS P/D
0.78
0.23
-NONACCRUAL
0.00
0.76
-TOTAL
0.78
0.99
LEASE FINANCING-90+ DAYS P/D
NA
0.02
-NONACCRUAL
NA
0.11
-TOTAL
NA
0.13
GROSS LN&LS-90+ DAYS P/D
0.50
0.28
-NONACCRUAL
0.00
0.64
-TOTAL
0.50
0.92
SUPPLEMENTAL:
BANKS WITH AGRI LOANS OVER 5%:
%NON-CURR AGRI LNS-90+ DAYS P/D
0.33
0.19
-NONACCRUAL
0.00
0.87
-TOTAL
0.33
1.06
*BANKS UNDER $300 MILLION IN TOTAL ASSETS REPORT THIS LOAN DETAIL (BY TYPE) USING THEIR OWN INTERNAL CATEGORIZATION
SYSTEMS.
----
page 19
CERT# 123781 DIST/RSSD: 11/
505756
CHARTER #
NA
COUNTY:
Leamers
PAGE 08A
NON-CURR LN&LS BY LN TYPE($000)
12/31/1994
-----------------------------------------LNS FIN COML RE-90+ DAYS P/D
0
-NONACCRUAL
0
-TOTAL
0
Southwest State Bank
ANALYSIS OF PAST DUE, NONACCRUAL & RESTRUCTURED LOANS & LEASES
LEAMERS, AZ
MEMORANDA INFORMATION
12/31/1998
-------------------
12/31/1997
12/31/1996
12/31/1995
-------------------
-------------------
---------------
0
0
0
0
0
0
0
0
0
0
0
0
CONST & LAND DEV-90+ DAYS P/D
0
-NONACCRUAL
0
-TOTAL
0
0
0
0
0
0
0
0
0
0
0
0
0
SINGLE & MULTI MTG-90+ DAYS P/D
0
-NONACCRUAL
0
-TOTAL
0
0
39
0
0
0
0
0
0
0
39
0
0
NON-FARM/RESI MTG-90+ DAYS P/D
0
-NONACCRUAL
0
-TOTAL
0
0
0
0
0
0
0
0
0
0
0
0
0
% NON-CURRENT LN&LS BY LN TYPE
BANK
PEER 018
-------------------------------- -------LNS FIN COML RE-90+ DAY P/D
NA
0.08
-NONACCRUAL
NA
0.43
-TOTAL
NA
0.52
CONST & LAND DEV-90+ DAYS P/D
NA
0.33
-NONACCRUAL
NA
0.34
-TOTAL
NA
0.67
BANK
PEER 014 PCT
------- -------- ---
BANK
PEER 018 PCT
------- -------- ---
BANK
PEER 018 PCT
BANK
---
PEER 018
------- -------- --- ------- --------
NA
0.00
99
NA
0.09
99
NA
0.05
99
NA
0.00
NA
0.16
99
NA
0.20
99
NA
0.23
99
NA
0.00
NA
0.16
99
NA
0.29
99
NA
0.28
99
NA
0.00
NA
0.50
96
NA
0.36
98
NA
0.15
98
NA
0.14
NA
0.75
96
NA
0.50
97
NA
0.43
98
NA
0.40
NA
1.25
93
NA
0.86
96
NA
0.58
97
NA
0.54
----
page 20
SINGLE & MULTI MTG-90+ DAYS P/D
0.00
0.26
-NONACCRUAL
0.00
0.41
-TOTAL
0.00
0.67
0.00
0.32
57
1.56
0.30
91
0.00
0.31
65
0.00
0.28
0.00
0.42
55
0.00
0.39
67
0.00
0.37
67
0.00
0.39
0.00
0.74
34
1.56
0.69
82
0.00
0.68
46
0.00
0 .67
NON-FARM/RESI MTG-90+ DAYS P/D
0.00
0.30
-NONACCRUAL
0.00
0.91
-TOTAL
0.00
1.21
0.00
0.31
84
0.00
0.29
90
0.00
0.22
89
0.00
0.24
0.00
0.62
76
0.00
0.74
84
0.00
0.75
83
0.00
0.76
0.00
0.93
66
0.00
1.03
76
0.00
0.96
75
0.00
1.00
2.02
1.45
79
2.62
1.41
85
2.11
1.38
71
2.54
1.41
0.00
0.15
83
0.00
0.17
88
0.00
0.18
87
0.00
0.20
0.00
0.08
85
0.00
0.12
87
0.00
0.13
84
0.00
0.12
OTHER PERTINENT RATIOS:
----------------------IENC-LOANS TO TOTAL LOANS
2.80
1.24
% CURRENT RESTRUCT LN&LS BY TYPE:
REAL ESTATE LOANS
0.00
0.27
ALL OTHER LOANS AND LEASES
0.00
0.19
CERT# 123781 DIST/RSSD: 11/
505756
CHARTER #
NA
COUNTY:
Leamers
PAGE 09
12/31/1994
-----------BANK
PEER 018
--- -------LONG ASSETS INSTS W/ OPTIONS
---------------------------MORTGAGE LOANS & PASS THRUS
NA
NA
LOANS & SECURITIES OVER 15 YRS
NA
NA
LOANS & SECURITIES 5-15 YRS
NA
NA
OTHER LOANS AND SECURITIES
NA
NA
Southwest State Bank
INTEREST RATE RISK ANALYSIS AS A PERCENT OF ASSETS
12/31/1998
12/31/1997
------------------BANK
PEER 014 PCT
------- -------- ---
12/31/1996
------------------BANK
LEAMERS, AZ
PEER 018 PCT
------- -------- ---
12/31/19 95
------------------BANK
PEER 018 PCT
--------------BA NK
---
PEER 018
------- -------- --- ------- --------
6.71
18.91
10
5.34
19.07
13
NA
NA
99
NA
NA
0.00
1.88
29
0.00
1.41
43
NA
NA
99
NA
NA
0.00
3.75
04
0.00
3.36
09
NA
NA
99
NA
NA
49.43
64.99
09
55.32
66.59
15
NA
NA
99
NA
NA
----
page 21
LOANS & SECURITIES OVER 15 YRS
NA
NA
LOANS & SECURITIES 5-15 YRS
NA
NA
TOTAL LOANS & SECURITIES OVR 15
NA
NA
CMO'S TOTAL
NA
NA
AVG LIFE OVER 3 YEARS
NA
NA
STRUCTURED NOTES
NA
NA
HIGH RISK SECURITIES
NA
NA
MORTGAGE SERVICING
NA
NA
TOTAL
NA
NA
OVERALL RISK INDICATORS
----------------------AVAILABLE FOR SALE
NA
NA
HELD TO MATURITY
NA
NA
OFF BALANCE SHEET
NA
NA
UNREALIZED APPN/DEPN
NA
NA
UNREAL APP/DEP % TIER ONE CAP
NA
NA
CONTRACTUAL MAT/REPRICE DATA
---------------------------LOANS/SECURITIES OVER 3 YEARS
NA
NA
LIABILITIES OVER 3 YEARS
NA
NA
NET 3 YEAR POSITION
NA
NA
LOANS/SECURITIES OVER 1 YEAR
NA
NA
LIABILITIES OVER 1 YEAR
NA
NA
NET OVER 1 YEAR POSITION
NA
NA
NON-MATURITY DEPOSITS
NA
NA
NON-MATURITY DEPS % LONG ASSETS
NA
NA
NET OVER 3 YEAR POSITION
NA
NA
AS % TIER 1 CAPITAL
BANK
PEER 018
--------------------- -------STRUCTURED NOTES
NA
NA
0.00
1.10
28
0.17
0.81
53
NA
NA
99
NA
NA
0.14
9.46
01
0.03
8.01
01
NA
NA
99
NA
NA
0.00
2.97
14
0.17
2.21
33
NA
NA
99
NA
NA
0.00
2.48
46
0.00
2.65
52
NA
NA
99
NA
NA
0.00
1.12
58
0.00
1.42
64
NA
NA
99
NA
NA
0.00
0.25
79
0.00
0.56
70
NA
NA
99
NA
NA
0.00
0.08
93
0.00
0.06
96
NA
NA
99
NA
NA
0.00
0.01
98
0.00
0.01
99
NA
NA
99
NA
NA
0.00
0.34
74
0.00
0.62
68
NA
NA
99
NA
NA
11.35
24.35
17
10.32
23.72
24
NA
NA
99
NA
NA
0.00
6.67
40
0.00
8.30
34
NA
NA
99
NA
NA
10.02
7.74
75
9.98
7.29
80
NA
NA
99
NA
NA
0.00
0.11
47
0.00
0.09
47
NA
NA
99
NA
NA
0.00
0.01
46
0.00
0.01
45
NA
NA
99
NA
NA
0.16
31.63
00
0.20
28.44
00
NA
NA
99
NA
NA
0.00
2.76
14
0.00
1.60
25
NA
NA
99
NA
NA
0.16
28.88
00
0.20
26.84
00
NA
NA
99
NA
NA
7.91
51.28
00
10.52
50.17
00
NA
NA
99
NA
NA
0.00
11.79
00
0.34
10.95
02
NA
NA
99
NA
NA
7.91
39.48
02
10.18
39.22
02
NA
NA
99
NA
NA
53.15
40.43
91
51.83
40.10
88
NA
NA
99
NA
NA
+ ##
127.81
99
+ ##
140.96
99
NA
NA
99
NA
NA
-52.98
-8.80
00
-51.63
-11.65
01
NA
NA
99
NA
NA
BANK
PEER 014 PCT
------- -------- --0.00
0.02
79
BANK
PEER 018 PCT
------- -------- --0.00
0.05
70
BANK
PEER 018 PCT
BANK
PEER 018
------- -------- --- ------- -------NA
NA
99
NA
NA
----
page 22
HIGH RISK SECURITIES
NA
NA
MORTGAGE SERVICING (FV)
NA
NA
TOTAL
NA
NA
0.00
0.01
93
0.00
0.01
96
NA
NA
99
NA
NA
0.00
0.08
98
0.00
0.07
99
NA
NA
99
NA
NA
0.00
0.03
74
0.00
0.06
68
NA
NA
99
NA
NA
CERT# 123781 DIST/RSSD: 11/
505756
CHARTER #
NA
COUNTY:
Leamers
PAGE 10
12/31/1994
-----------SHORT TERM INVESTMENTS
7438
SHORT TERM ASSETS
NA
SHORT TERM NON CORE FUNDING
NA
NON CORE LIABILITIES
6254
Southwest State Bank
LIQUIDITY AND INVESTMENT PORTFOLIO
12/31/1998
-------------------
DEBT SECURITIES 90+ DAYS P/D
0
TOTAL NON-CURRENT DEBT SEC
0
FAIR VALUE HIGH-RISK MTG SECS
NA
FAIR VALUE STRUCTURED NOTES
NA
PERCENT OF TOTAL ASSETS
BANK
PEER 018
------------------------- -------SHORT TERM INVESTMENTS
18.53
9.62
CORE DEPOSITS
71.07
78.04
S.T. NON CORE FUNDING
NA
NA
LIQUIDITY RATIOS
---------------NET S.T. NONCORE FUND DEPENDENCE
NA
NA
NET NON CORE FUND DEPENDENCE
3.87
1.96
BROKERED DEPOSITS TO DEPOSITS
0.00
0.25
BROKER DEP MAT < 1YR TO BKR DEPS
NA
NA
SHORT TRM INV TO S.T. NCORE FUND
NA
NA
12/31/1997
BANK
LEAMERS, AZ
12/31/1996
-------------------
12/31/1995
-------------------
---------------
23227
16400
16576
10022
35077
28280
30123
NA
8444
6997
5517
NA
8444
6997
5517
5053
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
PEER 014 PCT
------- -------- ---
BANK
PEER 018 PCT
------- -------- ---
BANK
PEER 018 PCT
BANK
---
PEER 018
------- -------- --- ------- --------
43.19
11.38
99
34.96
10.63
97
39.18
10.41
98
25.30
12.09
72.65
73.95
37
72.23
74.44
28
73.17
75.62
25
72.68
76.53
15.70
10.80
80
14.91
11.38
81
13.04
10.59
76
NA
NA
-52.31
-0.71
01
-32.98
0.91
05
-46.16
0.23
01
NA
NA
-52.31
3.96
01
-32.98
4.23
05
-46.16
3.08
01
-17.86
-0.25
0.00
0.43
89
0.00
0.47
89
0.00
0.35
90
0.00
0.30
NA
61.94
90
NA
72.82
89
NA
56.19
91
NA
NA
275.07
105.36
85
234.39
93.41
73
300.45
98.25
79
NA
NA
----
-
page 23
SHORT TERM ASSET TO S.T. LIABS
NA
NA
NET S.T. LIAB TO ASSETS
NA
NA
NET LOANS & LEASES TO DEPOSITS
60.89
58.81
NET LN&LS TO CORE DEPOSITS
74.03
65.36
NET LN&LS & SBLC TO ASSETS
52.61
51.29
SECURITIES MIX
HELD-TO-MATURITY % TOTAL SECS
U.S. TREAS & GOVT AGENCIES
19.35
27.80
MUNICIPAL SECURITIES
0.00
13.78
PASS-THROUGH MTG BACKED SECS
0.00
5.72
CMO & REMIC MTG BACKED SECS
0.00
3.33
OTHER DOMESTIC DEBT SECS
0.00
1.65
FOREIGN DEBT SECURITIES
NA
0.00
INVESTMENTS IN MUTUAL FUNDS
NA
NA
OTHER EQUITY SECURITIES
NA
NA
LESS: UNREALIZED LOSS (MES)
NA
NA
TOTAL HELD-TO-MATURITY
NA
NA
AVAILABLE-FOR-SALE % TOTAL SECS
U.S. TREASURY & GOVT AGENCIES
79.11
28.21
MUNICIPAL SECURITIES
1.52
3.81
PASS-THROUGH MTG BACKED SECS
0.00
8.26
CMO & REMIC MTG BACKED SECS
0.00
5.64
OTHER DOMESTIC DEBT SECURITIES
0.00
0.91
FOREIGN DEBT SECURITIES
NA
0.00
INV MUT F. & OTH MKTBL
0.00
0.34
OTHER EQUITY SECURITIES
0.02
0.54
TOTAL AVAILABLE-FOR-SALE
NA
NA
OTHER SECURITIES RATIOS:
HIGH RISK & STRUC NOTE TO T1CAP
NA
NA
APP (DEP) HI RISK & STRUC/T1CAP
NA
NA
APP (DEP) IN HTM SEC TO HTM SEC
3.27
-3.30
APP (DEP) IN HTM SEC TO EQY CAP
1.22
-6.26
PLEDGED SECURITIES TO TOT SEC
55.80
29.29
185.28
87.78
96
172.34
86.26
92
199.06
84.32
97
NA
NA
-30.02
4.35
01
-25.30
5.04
04
-35.43
5.72
00
NA
NA
50.46
64.50
18
57.47
65.34
33
64.90
61.98
57
66.82
60.00
61.22
74.57
22
69.18
75.30
42
76.11
70.70
65
78.55
67.80
44.48
55.37
20
49.97
56.30
35
55.69
53.74
55
57.08
52.17
0.00
11.05
66
0.00
14.13
55
0.00
15.55
54
0.00
16.18
0.00
7.78
44
0.00
7.96
41
0.00
8.31
41
0.00
8.30
0.00
1.75
75
0.00
2.54
71
0.00
2.72
69
0.00
2.92
0.00
0.54
89
0.00
0.82
87
0.00
0.96
85
0.00
1.17
0.00
0.39
91
0.00
0.47
89
0.00
0.51
86
0.00
0.71
NA
0.00
99
NA
0.00
99
NA
0.00
99
NA
0.00
NA
NA
99
NA
NA
99
NA
NA
99
NA
NA
NA
NA
99
NA
NA
99
NA
NA
99
NA
NA
NA
NA
99
NA
NA
99
NA
NA
99
NA
NA
0.00
21.51
40
0.00
25.93
34
0.00
28.05
34
0.00
29.29
83.06
42.03
91
97.44
42.77
97
97.57
41.69
98
98.71
40.20
2.00
13.18
39
2.52
11.06
54
2.39
9.98
54
1.27
9.84
14.91
12.95
69
0.00
10.32
45
0.00
10.34
42
0.00
10.43
0.00
7.20
52
0.00
7.37
60
0.00
7.65
57
0.00
7.82
0.00
1.66
77
0.00
1.07
82
0.00
1.04
80
0.00
1.30
NA
0.00
99
NA
0.00
99
NA
0.00
99
NA
0.00
0.00
0.39
86
0.04
0.40
89
0.00
0.39
88
0.00
0.40
0.03
1.08
18
0.00
1.08
27
0.04
0.86
34
0.02
0.72
100.00
78.49
99
100.00
74.07
99
NA
NA
99
NA
NA
0.00
0.03
75
0.00
0.06
68
0.00
0.09
59
0.00
0.16
0.00
0.00
93
0.00
0.00
93
0.00
0.00
95
0.00
0.00
NA
1.66
46
NA
1.06
45
NA
0.48
58
NA
1.13
-
0.00
1.03
46
0.00
0.81
45
0.00
0.44
58
0.00
1.12
-
81.86
34.36
94
99.96
34.78
99
99.96
32.85
99
57.27
31.19
page 24
CERT# 123781 DIST/RSSD: 11/
505756
CHARTER #
NA
COUNTY:
Leamers
PAGE 11
Southwest State Bank
CAPITAL ANALYSIS
END OF PERIOD CAPITAL ($000)
12/31/1998
12/31/1994
--------------------------------------------------------PERPETUAL PREFERRED
0
0
+ COMMON STOCK
1000
1000
+ SURPLUS
2750
2750
+ UNDIVIDED PROFITS
2181
1697
+ UNREALIZED G/L AVAIL SALE SECS
75
-197
+ CUMMULATIVE FOREIGN CURR. ADJ.
NA
NA
TOTAL EQUITY CAPITAL
6006
5250
LIMITED LIFE PREFERRED
0
SUBORDINATED NOTES & DEBENTURES
0
CHANGES IN TOTAL EQUITY ($000)
-----------------------------BALANCE AT BEGINNING OF PERIOD
5234
+ NET INCOME
613
+ SALE OR PURCHASE OF CAPITAL
0
+ MERGER & ABSORPTIONS
0
+ CUMUL ACCTG. CHANGES
0
+ CORR. MATERIAL ACCTG. CHG.
0
+ TRANS. WITH PARENT
0
- DIVIDENDS
400
+ NET OTHER INCREASE (DECREASE)
-197
BALANCE AT END OF PERIOD
5250
INTANGIBLE ASSETS
----------------MORTGAGE SERVICING RIGHTS
0
+ PURCH CRED CARD RELATION.
0
+ OTHER INTANGIBLES
0
+ GOODWILL
0
TOTAL INTANGIBLES
0
12/31/1997
-------------------
LEAMERS, AZ
12/31/1996
-------------------
12/31/1995
---------------
0
0
0
1000
1000
1000
2750
2750
2750
2010
1927
1833
33
7
32
NA
NA
NA
5793
5684
5615
0
0
0
0
0
0
0
0
5788
5684
5615
5250
876
783
494
486
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
700
700
400
350
42
26
-25
229
6006
5793
5684
5615
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
---
page 25
0
MEMO:
GRANDFATHERED INTANGIBLES
0
CAPITAL RATIOS
BANK
PEER 014
BANK
PEER 018
-------------------- ---------- -------PERCENT OF TOTAL EQUITY:
NET LOANS & LEASES (X)
3.98
5.06
4.02
4.99
SUBORD NOTES & DEBENTURES
0.00
0.03
0.00
0.02
LONG TERM DEBT
0.00
0.03
0.00
0.13
COM RE & RELATED VENTURES
15.32
82.47
11.70
77.89
PERCENT OF AVERAGE TOTAL EQUITY:
NET INCOME
14.64
11.43
11.91
12.27
DIVIDENDS
11.70
7.27
7.77
6.52
RETAINED EARNINGS
2.94
4.15
4.14
5.76
OTHER CAPITAL RATIOS:
DIVIDENDS TO NET OPER INCOME
79.91
63.64
65.25
53.18
EQUITY CAPITAL TO ASSETS
11.17
10.89
13.08
10.21
GROWTH RATES:
TOTAL EQUITY CAPITAL
3.68
6.76
0.31
1.69
EQUITY GROWTH LESS ASST GROWTH
-10.94
5.08
0.60
4.92
INTANG ASSETS % TOTAL EQUITY
MORTGAGE SERVICING RIGHT
0.00
0.07
0.00
0.07
GOODWILL
0.00
2.75
0.00
0.61
PURCH CREDIT CARD RELATION
0.00
0.00
0.00
0.00
ALL OTHER INTANGIBLES
0.00
0.29
0.00
0.29
TOTAL INTANGIBLES
0.00
3.11
0.00
0.96
CERT# 123781 DIST/RSSD: 11/
505756
CHARTER #
NA
COUNTY:
Leamers
PAGE 11A
0
PCT
---
BANK
0
PEER 018 PCT
------- -------- ---
BANK
0
PEER 018 PCT
BANK
PEER 018
------- -------- --- ------- --------
25
4.05
5.14
33
4.15
4.94
37
4.03
4.76
99
0.00
0.02
99
0.00
0.02
99
0.00
0.02
99
0.00
0.02
99
0.00
0.06
98
0.00
0.07
09
19.54
82.43
25
23.01
78.60
32
20.55
73.95
72
13.37
12.15
69
8.81
11.96
28
9.00
11.74
78
11.95
7.20
83
7.14
6.64
67
6.48
6.71
31
1.42
4.95
21
1.68
5.3 2
20
2.52
5.03
74
89.40
59.32
83
80.97
55.49
80
72.02
57.21
63
12.3 5
10.91
67
13.44
10.81
77
14.17
10.90
28
1.92
6.90
20
1.23
5.34
20
6.95
12.09
11
-8.97
8.36
10
-5.57
5.11
17
8.24
15.01
98
0.00
0.05
99
0.00
0.07
99
0.00
0.01
85
0.00
1.96
91
0.00
1.13
93
0.00
0.84
99
0.00
0.00
99
0.00
0.03
99
0.00
0.00
92
0.00
0.21
93
0.00
0.24
94
0.00
0.26
78
0.00
2.23
86
0.00
1.47
88
0.00
1.11
Southwest State Bank
RISK-BASED CAPITAL ANALYSIS
RISK-BASED CAPITAL ($000)
12/31/1998
12/31/1994
-----------------------------------------------------TIER ONE CAPITAL
COMMON EQUITY
5931
5447
+ NONCUMULATIVE PERP PREFD STOCK
0
0
+ MINORITY INTEREST UNCONS SUBS
0
0
- INELIGIBLE DEF. TAX ASSETS
0
0
----
LEAMERS, AZ
12/31/1997
12/31/1996
12/31/1995
-------------------
-------------------
---------------
5760
5677
5583
0
0
0
0
0
0
0
0
0
---
page 26
- INELIGIBLE INTANGIBLES
0
NET TIER ONE
5447
TIER TWO CAPITAL
+ ALLOWABLE SUB DEBT & LTD LIFE
0
+ CUMULATIVE PREFERRED STOCK
0
+ MANDATORY CONVERTIBLE DEBT
0
+ ALLOWABLE LN&LS LOSS ALLOWANCE
204
+ UNRL GAIN MKTBL EQY SEC (45%)
0
+ NET WORTH CERTIFICATES
0
NET ELIGIBLE TIER TWO
204
TOTAL RBC BEFORE DEDUCTIONS
TIER ONE & TIER TWO
5651
TIER THREE
NA
- RECIPROCAL CAPITAL HOLDINGS
0
TOTAL RISK-BASED CAPITAL
5651
RISK-WEIGHTED ASSETS(**)
-------------------ON-BALANCE SHEET
CATEGORY TWO - 20%
1514
CATEGORY THREE - 50%
1397
CATEGORY FOUR - 100%
19539
TOTAL ON-BALANCE SHEET
22450
MEMO: CATEGORY ONE - 0%
10743
OFF-BALANCE SHEET
CATEGORY TWO - 20%
0
CATEGORY THREE - 50%
0
CATEGORY FOUR - 100%
0
TOTAL OFF-BALANCE SHEET
0
MEMO: CATEGORY ONE - 0%
0
ADJUSTMENTS TO RISK-WEIGHTED ASSETS
----------------------------------RISK-WEIGHTED ASSET BEFORE DED
22450
- INELIGIBLE DEF. TAX ASSETS
0
- INELIGIBLE INTANGIBLES
0
0
0
0
0
5931
5760
5677
5583
0
0
0
0
0
0
0
0
0
0
0
0
170
172
183
184
0
0
0
0
NA
NA
NA
0
170
172
183
184
6101
5932
5860
5767
NA
NA
NA
NA
0
0
0
0
6101
5932
5860
5767
4705
3479
2506
1268
1349
1253
1254
1338
22476
22238
22291
21029
28531
269 71
26051
23636
5168
4911
5145
9697
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
28531
26971
260 51
23636
0
0
0
0
0
0
0
0
page 27
- RECIPROCAL CAPITAL HOLDINGS
0
- EXCESS ALLOWABLE LN&LS LOSS AL
0
- ALLOCATED TRANSFER RISK RESERV
0
+ MARKET RISK EQUIV ASSETS
NA
TOTAL RISK-WEIGHTED ASSETS
22450
RISK-BASED CAPITAL
BANK
PEER 018
-------------------- -------TIER ONE RBC TO RISK-WGT ASSETS
24.26
18.68
TOTAL RBC TO RISK-WEIGHT ASSETS
25.17
19.84
TIER ONE LEVERAGE CAPITAL
13.77
10.62
OTHER CAPITAL RATIO:
DEF TAX ASSET TO T1 CAP
1.62
3.11
BANK
0
0
0
0
0
0
0
0
0
0
0
0
NA
NA
NA
NA
28531
26971
26051
23636
PEER 014 PCT
------- -------- ---
BANK
PEER 018
PCT
------- -------- ---
BANK
PEER 018 PCT
BANK
PEER 018
------- -------- --- ------- --------
20.79
17.15
74
21.36
17.43
66
21.79
18.25
66
23.62
18.64
21.38
18.27
72
21.99
18.56
65
22.49
19.39
64
24.40
19.79
11.36
10.60
68
12.57
10.72
70
13.79
10.79
80
14.47
10.80
0.00
0.82
59
0.00
0.91
63
0.11
1.13
57
0.00
0.92
----
**BANK DID NOT REPORT ALL SCHEDULE RC-R DATA, THEREFORE, RISK-WEIGHTED ASSETS ARE ESTIMATED.
CERT# 123781 DIST/RSSD: 11/
505756
CHARTER #
NA
COUNTY:
Leamers
PAGE 12
Southwest State Bank
ONE QUARTER ANNUALIZED INCOME ANALYSIS
12/31/1998
12/31/1994
EARNINGS AND PROFITABILITY
------------------------------------------------------BANK
PEER 014 PCT
BANK
PEER 018
PERCENT OF AVERAGE ASSETS:
------- -------- ----- -------INTEREST INCOME (TE)
6.80
7.56
09
7.67
7.90
- INTEREST EXPENSE
3.28
3.52
30
3.42
3.63
NET INTEREST INCOME (TE)
3.52
4.04
19
4.25
4.27
+ NONINTEREST INCOME
0.93
0.71
86
0.38
0.69
MEMO: FEE INCOME
0.06
0.25
26
0.03
0.22
- NON-INTEREST EXPENSE
2.74
2.96
48
3.46
2.95
- PROVISION: LOAN&LEASE LOSSES
0.15
0.29
56
0.33
0.30
= PRETAX OPERATING INCOME (TE)
1.55
1.50
44
0.84
1.71
+ REALIZED GAINS/LOSSES SECS
0.00
0.03
76
0.00
0.02
= PRETAX NET OPERATING INC(TE)
1.55
1.53
43
0.84
1.73
NET OPERATING INCOME
1.52
1.05
79
0.86
1.13
ADJUSTED NET OPERATING INCOME
1.54
1.08
77
0.77
1.19
ADJUSTED NET INCOME
1.06
1.05
42
0.54
1.21
12/31/1997
12/31/1996
------------------BANK
LEAMERS, AZ
PEER 018 PCT
------- -------- ---
12/31/1995
------------------BANK
PEER 018 PCT
--------------BANK
---
PEER 018
------- -------- --- ------- --------
7.23
7.83
18
7.49
7.78
34
7.40
7.73
3.32
3.64
32
3.36
3.61
37
3.33
3.57
3.91
4.19
30
4.13
4.18
47
4.07
4.17
0.53
0.68
55
0.31
0.66
23
0.34
0.66
0.06
0.22
41
0.15
0.22
73
0.05
0.23
2.56
2.70
44
2.47
2.66
39
2.58
2.65
0.00
0.19
41
0.00
0.17
45
0.00
0.15
1.87
1.99
48
1.97
2.01
52
1.83
2.03
0.00
0.02
81
0.00
0.01
82
0.00
0.02
1.87
2.00
47
1.97
2.02
51
1.83
2.04
1.87
1.36
84
1.97
1.38
87
1.82
1.38
1.87
1.42
81
1.94
1.43
82
1.82
1.45
1.26
1.39
43
1.31
1.39
47
1.24
1.41
----
page 28
NET INCOME
0.86
1.14
MARGIN ANALYSIS:
INT INC (TE) TO AVG EARN ASSETS
7.91
8.44
INT EXPENSE TO AVG EARN ASSETS
3.53
3.88
NET INT INC-TE TO AVG EARN ASST
4.38
4.56
LOAN & LEASE ANALYSIS
--------------------NET LOSS TO AVERAGE TOTAL LN&LS
0.81
0.42
EARNINGS COVERAGE OF NET LOSS(X)
2.83
7.74
LN&LS ALLOWANCE TO NET LOSSES(X)
0.90
3.58
CAPITALIZATION
-------------CASH DIVIDENDS TO NET INCOME
306.12
112.19
RETAIN EARNS TO AVG TOTAL EQUITY
13.72
-1.25
YIELD ON OR COST OF:
TOTAL LOANS & LEASES (TE)
9.76
9.70
TOTAL LOANS
9.76
9.68
REAL ESTATE**
11.15
9.29
COMMERCIAL TIME, DEMAND, OTH**
8.30
9.79
INSTALLMENT**
10.95
10.59
CREDIT CARD PLANS
14.14
14.10
MEMO:
AGRICULTURAL LNS IN ABOVE
8.76
9.48
TOTAL INVESTMENT SECURITIES (TE)
6.15
6.65
US TREAS, AGCY & OTH DEBT
6.36
6.35
STATE & POLITICAL SUB (BOOK)
3.33
5.44
STATE & POLITICAL SUB (TE)
2.30
7.86
EQUITY SECURITIES
0.00
7.56
INTEREST-BEARING BANK BALANCES
NA
5.69
FEDERAL FUNDS SOLD & RESALES
5.69
5.53
TOTAL INT-BEARING DEPOSITS
4.70
4.69
TRANSACTION ACCOUNTS
2.57
2.67
MONEY MARKET DEPOSIT ACCOUNTS
4.58
3.68
OTHER SAVINGS DEPOSITS
2.80
3.22
1.52
1.05
79
1.87
1.36
84
1.97
1.38
87
1.82
1.38
7.82
8.09
32
8.10
8.36
38
7.90
8.29
30
7.79
8.24
3.78
3.77
49
3.72
3.88
42
3.55
3.84
34
3.50
3.80
4.05
4.32
36
4.37
4.47
45
4.36
4 .45
44
4.29
4.44
0.30
0.46
65
0.00
0.22
47
0.07
0.20
61
0.00
0.15
12.39
6.34
70
NA
16.07
47
59.00
17.35
88
NA
23.36
2.36
3.29
50
NA
6.95
47
10.50
7.36
78
NA
9.93
100.50
110.30
65
132.16
43.84
96
84.75
66.54
83
0.00
61.62
-0.07
-0.97
39
-4.83
6.86
03
2.38
4.18
21
14.21
4.81
9.72
9.35
68
9.91
9.61
69
9.89
9.53
70
10.13
9.47
9.72
9.33
70
9.91
9.58
69
9.89
9.52
71
10.13
9.45
6.81
9.05
04
9.24
9.16
57
9.33
9.12
64
9.17
9.07
12.72
9.42
95
10.55
9.72
85
10.4 0
9.65
86
11.00
9.54
6.91
10.48
05
9.63
10.54
35
10.38
10.43
56
10.41
10.31
14.36
4.88
77
12.77
16.08
82
13.19
15.23
85
12.90
15.48
8.84
9.02
51
8.63
9.06
45
11.96
9.08
94
10.07
9.25
6.29
6.37
46
8.20
6.49
98
6.17
6.50
30
6.44
6.55
6.37
6.08
80
8.18
6.19
99
6.24
6.21
60
6.40
6.27
3.33
5.15
07
6.67
5.33
91
3.33
5.33
11
6.67
5.37
2.90
7.43
07
8.83
7.65
86
3.33
7.71
10
8.40
7.75
0.00
6.60
30
0.00
6.16
56
0.00
6.24
55
0.00
6.23
0.00
5.39
55
0.00
5.82
62
NA
5.77
63
NA
5.71
5.59
5.01
90
5.52
5.50
52
5.71
5.51
74
5.00
5.36
4.33
4.54
30
4.71
4.66
57
4.55
4.62
48
4.46
4.57
2.44
2.55
51
2.56
2.66
54
2.52
2.64
53
2.48
2.62
4.51
3.62
93
4.59
3.72
91
4.56
3.68
93
4.50
3.61
3.05
3.06
65
2.73
3.18
37
2.99
3.15
57
2.99
3.10
-
-
page 29
TIME DEPS OVER $100M
5.74
5.62
ALL OTHER TIME DEPOSITS
5.34
5.70
5.40
5.50
41
3.37
5.57
05
8.95
5.55
98
4.35
5.49
4.28
5.51
02
7.38
5.64
98
2.54
5.59
00
5.50
5.56
64
NA
5.05
66
NA
5.09
66
NA
5.04
55
3.56
5.61
73
3.79
5.58
78
4.88
5.68
99
NA
8.73
99
NA
10.46
99
NA
5.41
28
4.71
4.69
55
4.55
4.65
47
4.46
4.60
FEDERAL FUNDS PURCH & REPOS
NA
4.89
NA
5.29
OTHER BORROWED MONEY
3.94
5.78
4.44
6.10
SUBORDINATED NOTES & DEBENTURES
NA
8.16
NA
6.50
ALL INTEREST-BEARING FUNDS
4.33
4.58
4.70
4.72
**BANKS UNDER $300 MILLION IN TOTAL ASSETS REPORT
SYSTEMS.
THIS LOAN DETAIL (BY TYPE) USING THEIR OWN INTERNAL CATEGORIZATION
Copyright © 2000 by Harcourt, Inc.