FINANCIAL HIGHLIGHTS

As of December 31, 2016 and 2015

Year Percentage
2016 2015 of Change
For the Year Ended (In Pesos):
Gross Revenues P 33,612,961.51 P 35,671,497.00 -5.77%
Gross Expenses 31,451,728.22 34,603,908.37 -9.11%
Net Income 2,161,233.29 1,067,588.63 102.44%

At Year End (In Pesos):

Total Assets P 283,399,948.75 P 266,982,658.69 6.15%
Loans and Receivables 124,622,254.62 139,478,017.58 -10.65%
Deposit Liabilities 201,769,184.53 189,239,469.34 6.62%
Equity 73,655,798.28 69,859,198.33 5.43%

Number of Branches (Including Head Office): 6 6

Other Quantitative Indicators:

Earnings Per Share P 4.08 P 2.09 95.22%
Book Value Per Share 138.93 136.94 1.45%
Capital Adequacy Ratio 22.28% 22.02% 1.18%
Past Due / ITL Ratio 18.27% 16.43% 11.20%
Return on Average Equity 3.01% 1.55% 94.19%
Return on Average Assets 0.79% 0.39% 102.56%
Net Interest Margin 9.96% 10.40% -4.23%
Debt to Equity Ratio 2.85:1 2.82:1 1.06%
STATEMENTS OF FINANCIAL POSITION
As of December 31, 2016 and 2015

Year
2016 2015
ASSETS
Cash and Cash Equivalents (Note 5) P 131,250,635.86 102,238,345.25
Loans and Receivables (Note 6) 124,622,254.62 139,478,017.58
Sales Contract Receivable (Note 7) 2,165,476.15 1,327,412.99
Bank Premises, Furniture, Fixtures and (Note 8) 4,198,994.16 5,389,336.13
Equipment
Investment Property 14,373,053.79 12,053,763.93
Deferred Tax Assets (Note 10) 3,469,316.01 3,892,646,.51
Other Assets (Note 11) 3,320,218.16 2,603,136.30
Total Assets P 283,399,948.75 P 266,982,658.69

LIABILITIES AND EQUITY

Deposit Liabilities (Note 12) P 201,769,184.53 P 189,239,469.34
Bills Payables (Note 13) 4,760,000.00 4,675,000.00
Accrued Interest, Taxes and Other (Note 14) 561,002.02 948,504.20
Expenses Payable
Other Liabilities (Note 15 2,653,963.92 2,260,486.82
Total Liabilities 209,744,150.47 197,123,460.36
Equity (Note 16)
Ordinary Share Capital 53,014,900.00 51,014,900.00
Surplus Reserve 820,640.02 820,640.02
Surplus 19,820,258.26 18,023,658.31
Total Equity 73,655,798.28 69,859,198.33
Total Liabilities and Equity 283,399,948.75 266,982,658.69
Book Value Per Share 138.93 136.94
STATEMENT OF INCOME
For the Yeas Ended December 31, 2016 and 2015
Year
Interest Income 2016 2015
Loans and Receivables P 27,177,504.59 P 29,612,186.80
Due from Other Banks 1,496,506.16 1,075,232.07
Total Interest Income 28,674,010.75 30,687,418.87
Interest Expenses
Deposit Liabilities 4,816,845.24 5.396,051.60
Borrowed Funds 28,911.81 20,695.14
Total Interest Expenses 4,845,757.05 4,416,746.74
Net Interest Income 23,828,253.70 25,270,672.13
Provision for Credit Losses 0.00 2,681,118.59
Net Interest Income After Provision 23,828,253.70 22,589,553.54
Other Operating Income (Note 17) 4,938,950.76 4,984,078.13
Net Income Before Other Operating Expenses 28,767,204.46 27,573,631.67
Other Operating Expenses
Compensation / Fringe Benefits 11,154,767.75 12,250,046.96
Management and Other Professional Fees 239,721.25 261,714.56
Taxes and Licenses (Note 26) 2,101,804.07 2,148,078.94
Insurance 562,445.79 591,057.06
Banking Fees 39,363.99 0.00
Depreciation / Amortization (Note 8) 2,510,059.84 2,051,587.42
Impairment Loss 40,000.00 0.00
Litigation Expenses 940,436.11 787,043.06
Other Expenses (Note 18) 8,057,137.66 7,960,561.79
Total Other Operating Expenses 25,645,736.46 26,050,089.79
Net Income Before Income Tax 3,121,468.00 1,523,541.88
Income Tax Expense (Note 24) 960,234.71 455.953.25
Net Income After Income Tax P 2,161,233.29 P 1,967,588.63
Earnings Per Share P 4.08 P 2.09
STATEMENTS OF CHANGES IN EQUITY
For the Years Ended December 31, 2016 and 2015

Year
2016 2015
Ordinary Share Capital - Beginning P 51,014,900.00 P 49,014,900.00
Additions during the year (Note 16) 2,000,000.00 2,000,000.00
Ordinary Share Capital Ending 53,014,900.00 51,014,900.00
Surplus Reserve Beginning 820,640.02 820,640.02
Additions during the year 0.00 0.00
Surplus Reserve Ending 820,640.02 820,640.02
Surplus Beginning 18,023,658.31 17,791,818.82
Net Income For the year SI 2,161,233.29 1,067,588.63
Prior years adjustments (Note 16) (364,633.34) (835,749.14)
Surplus Ending 19,820,258.26 18,023,658.31
Total Equity - Ending P 73,655,798.28 P 69,859,198.33
STATEMENT OF CASH FLOWS
For the Years Ended December 31, 2016 and 2015

Year
2016 2015
Operating Activities:
Net Income P 2,161,233.29 P 1,067,588.63
Adjustments to Net Income:
Depreciation / Amortization (Note 8) 2,510,059.84 2,051,587.42
Prior Years Adjustments (Note (364,633.34)
16)
Decrease / (Increase) in Operating Assets:
Loans and Receivables (Note 6) 14,855,762.96 25,874,303.95
Sales Contract Receivable (Note 7) (838,063.16) (144,453.14)
Deferred Tax Assets (Note 423,330.50 (804,335.57)
10)
Other Assets (Note 11) (717,081.86) 1,244,452.05
Increase / (Decrease) in Current Liabilities:
Deposit Liabilities (Note 12,529,715.19 (21,831,598.06)
12)
Accrued Interest, Taxes, and Other Expenses (Note (387,502.18) 74,606.02
14)
Other Liabilities (Note 393,477.10 179,995.72
15)
Net Cash Provided / (Used) by Operating 30,566,298.34 6,876,397.88
Activities
Investing Activities:
Bank Premises, Furniture, Fixtures & Equipment (Note 8) (523,986.26) (3,538,401.01)
Investing Property (Note 9) (3,115,021.47) (1,952,301.65)
Net Cash Provided / (Used) by Investing Activities (3,639,007.73) (5,490,702.66)
Financing Activities:
(Reduction) / Additions to Borrowings-Bills Payable (Note 85,000.00 (255,000.00)
13)
Additional Paid-in Capital (Note 2,000,000.00 2,000,000.00
16)
Net Cash Provided / (Used) by Financing 2,085,000.00 1,745,000.00
Activities
Net Increase / (Decrease) in Cash 29,012,290.61 3,130,695022
Cash Balance Beginning of Year 102,238,345.25 99,107,650.03
Cash Balance End of Year P131,250,635.8 P102,238,34502
6 5

DISCLOSURE:
Interest Paid P 4,859,573.58 5,475,066.52
Interest Received 28,313,160.95 29,869,405.33
Dividend Received 0.00 0.00
Income Taxes Paid 979,145.06 266,808.01
i
i(See Accompanying Notes to Financial Statements)