2006 ANNUAL REPORT - Far East National Bank

FAR EAST NATIONAL BANK AND SUBSIDIARYCONSOLIDATED BALANCE SHEETSDECEMBER 31, 2006 AND 2005ASSETS 2006 2005Cash and cash equivalentsSecurities available-for-sale$ 117,020,321336,849,607$ 130,396,266314,942,760Securities held-to-maturity 74,725,178 88,904,644Federal Home Loan Bank stock—at cost 9,929,300 9,635,000Federal Reserve Bank stock—at cost 3,385,200 3,386,800Loans, net of allowance for loan losses of $13,280,855 in 2006 and$11,937,392 in 2005 1,206,886,323 1,136,916,011Customers’liability on acceptances 601,018 1,490,951Other real estate owned - 3,360,186Premises and equipment—net 9,386,599 10,548,717Deferred tax assets 7,185,107 4,724,322Goodwill 25,749,881 25,749,881Other intangible assets—net 2,609,250 3,073,116Bank owned life insurance 32,949,858 31,559,699Other assets 20,530,177 18,735,360TOTAL $ 1,847,807,819 $ 1,783,423,713LIABILITIES AND STOCKHOLDER’S EQUITYDEPOSITS:Non-interest bearing $ 161,087,398 $ 180,876,373Interest bearing 338,875,269 400,265,104Time certificates ofdeposit:Under $100,000 202,536,139 191,900,950$100,000 and over 638,784,695 559,081,280Total deposits 1,341,283,501 1,332,123,707OTHER LIABILITIES:Federal funds purchased and securities sold under agreementsto repurchase 140,282,090 107,138,851FHLB advances 125,000,000 125,000,000Subordinated debt 15,000,000 15,000,000Acceptances outstanding 601,018 1,490,951Other liabilities 24,906,532 20,109,950Total other liabilities 305,789,640 268,739,752MINORITY INTEREST IN PREFERRED STOCK OF SUBSIDIARY - 1,000,000COMMITMENTS AND CONTINGENCIES (Note 13)STOCKHOLDER’S EQUITY:Common stock, $1.25 par value—6,800,000 shares authorized;issued and outstanding, 180,000 shares 225,000 225,000Additional paid-in-capital 112,668,127 112,668,127Retained earnings 89,589,300 71,334,164Accumulated other comprehensive loss—net (1,747,749) (2,667,037)Total stockholder’s equity 200,734,678 181,560,254TOTAL $ 1,847,807,819 $ 1,783,423,713See accompanying notes to consolidated financial statements.12