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Farmers State Bank

Waterloo, IA · Cert 12855 · FSB Financial Services Inc.

State charter, non-member · FDIC · 1 affiliate bank · 8 branches (10 in holding)

Q2 2026

$1.6BAssets
$1.3BLoans
$1.3BDeposits
$172.6MEquity
Loan mix
81%RE $1.0B16%C&I $0.2B2%Consumer $0.0BQ2 2025Q2 2026
Deposit mix
85%Interest-bearing $1.1B15%Noninterest $0.2BQ2 2025Q2 2026

NIM

4.78%Q2 ’245.03%Q2 ’255.30%Q2 ’26+40%+39%

Non-interest income vs. expense

1.47%Q2 ’241.46%Q2 ’251.63%Q2 ’26-3%+13%

Market Position · Waterloo-Cedar Falls, IA · 2026 SOD (annual) · 21.4% share · #1 of 23 inst. · $1.0B of $4.7B

34.9% Black Hawk
20.2% Buchanan
4.5% Dallas
5.6% Bremer

Executive Summary

  • Earnings: ROA of 1.15%, up 46 bps year over year; NIM at 2.95%.
  • Asset quality: problem loans at 0.01% of loans (+1 bps YoY), with net charge-offs at 0.01%.
  • Capital: tier 1 leverage ratio of 11.20%, up 115 bps from a year ago.
  • Funding: loans stand at 103.89% of deposits as of Q2 2026.

Financial Results

Return on Assets (YTD, annualized)

1.15%+46 bps YoY

Net Interest Margin (YTD, annualized)

2.95%+83 bps YoY

Efficiency Ratio (YTD, annualized)

51.21%-1,088 bps YoY

Tier 1 Leverage Ratio

11.20%+115 bps YoY

Year to date, annualized, through each quarter.

MetricQ2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets0.70%0.76%0.86%1.09%1.15%+46 bps
Return on Equity7.80%8.32%9.24%10.71%11.10%+330 bps
Net Interest Margin2.13%2.25%2.38%2.85%2.95%+83 bps
Efficiency Ratio62.09%59.64%56.44%52.41%51.21%-1,088 bps
Non-Interest Burden1.23%1.25%1.24%1.39%1.40%+17 bps
Growth
Asset Growth (YoY)1.57%-2.95%-0.77%-2.73%-1.65%-322 bps
Loan Growth (YoY)-0.06%-1.24%-0.67%-0.99%0.43%+49 bps
Deposit Growth (YoY)7.24%3.95%7.90%0.64%-2.37%-961 bps
Asset Quality
Nonperforming Loans / Loans0.00%0.04%0.05%0.01%0.01%+1 bps
Net Charge-Offs / Loans0.01%0.01%0.01%0.02%0.01%0 bps
Allowance / Loans1.01%1.02%1.02%1.05%1.06%+5 bps
Allowance Coverage of NPLs423.7x25.9x20.7x96.3x79.9x-343.8x
Capital
Tier 1 Leverage Ratio10.05%10.34%10.62%10.77%11.20%+115 bps
Total Risk-Based Capital13.71%13.88%13.91%14.36%14.51%+80 bps
Equity / Assets9.07%9.92%10.01%10.35%10.80%+173 bps
Liquidity & Funding
Loans / Deposits101.00%103.23%105.62%103.10%103.89%+289 bps
Liquid Assets / Assets1.37%0.56%2.00%0.42%1.21%-16 bps
CRE / Total Capitaln/a375%374%354%n/an/a