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Arlington State Bank

Arlington, MN · Cert 1391 · Arlco Inc.

State charter, non-member · FDIC · 2 branches

Q2 2026

Board Package

Performance Trends and Peer Comparison

Part 1Performance Trends, own institution only2
Part 2Peer Comparison, banks under $1B in assets in MN3

Basis

Quarter: Q2 2026, the quarter ended June 30, 2026, on both parts.

Income statement: year to date as filed, annualized, on both parts.

Balance sheet: as filed at quarter end.

Peer group

Banks under $1B in assets in MN (n=111 to 113). Each measure ranks only the institutions that reported it, so n varies by measure.

Peer groups below the disclosure floor are suppressed.

Peer standing

Capital

57

Q2 2024Q2 2026peer median (50)

Asset Quality

24

Q2 2024Q2 2026peer median (50)

Profitability

4

Q2 2024Q2 2026peer median (50)

Liquidity

0

Q2 2024Q2 2026peer median

Efficiency

4

Q2 2024Q2 2026peer median (50)

Growth

No peer data yet

Capital, Asset Quality, Profitability, Efficiency: higher is always a stronger peer standing (▲ better, ▼ worse). Liquidity, Growth: the score reflects closeness to the peer median -- 100 is sitting exactly at the median, falling the same way whether the bank runs above or below it.

Source: FFIEC Call Report (031/041/051), as filed. Dollar figures derived from reported amounts in thousands. Ratios computed by CallReports.ai using published regulatory formulas.

CallReports · callreports.ai · Board PackageGenerated 2026-10-11

Arlington State Bank

Arlington, MN · Cert 1391 · Arlco Inc.

State charter, non-member · FDIC · 2 branches

Q2 2026

$56.7MAssets
$20.0MLoans
$52.7MDeposits
$3.5MEquity
Loan mix
85%RE $16.3M7%C&I $1.3M8%Consumer $1.6MQ3 2024Q2 2026
Deposit mix
71%Interest-bearing $37.5M29%Noninterest $15.2MQ3 2024Q2 2026

Executive Summary

  • Earnings: ROA of 0.11%, down 26 bps year over year; NIM at 2.52%.
  • Asset quality: problem loans at 2.12% of loans (+205 bps YoY), with net charge-offs at 0.07%.
  • Capital: tier 1 leverage ratio of 10.13%, up 24 bps from a year ago.
  • Funding: loans stand at 37.90% of deposits as of Q2 2026.

Return on Assets (YTD, annualized)

0.11%-26 bps YoY

Net Interest Margin (YTD, annualized)

2.52%+24 bps YoY

Efficiency Ratio (YTD, annualized)

94.99%-542 bps YoY

Tier 1 Leverage Ratio

10.13%+24 bps YoY

NIM

3.28%Q2 ’243.16%Q2 ’253.39%Q2 ’26-4%+11%

Non-interest income vs. expense

2.16%Q2 ’242.38%Q2 ’252.48%Q2 ’26+12%+4%

Year to date, annualized, through each quarter.

MetricQ3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets0.23%0.25%0.47%0.36%0.26%0.26%0.12%0.11%-26 bps
Return on Equity6.58%7.38%12.03%8.48%5.61%5.04%1.91%1.73%-676 bps
Net Interest Margin2.25%2.29%2.22%2.28%2.37%2.42%2.48%2.52%+24 bps
Efficiency Ratio88.62%87.44%114.25%100.42%99.36%96.80%94.32%94.99%-542 bps
Non-Interest Burden1.98%1.98%2.54%2.29%2.35%2.33%2.34%2.39%+10 bps
Growth
Asset Growth (YoY)-3.85%-6.06%-7.54%-4.86%-7.14%-4.05%-0.58%-1.38%+348 bps
Loan Growth (YoY)-10.38%-9.29%-3.74%-0.34%7.69%7.91%15.48%10.36%+1,070 bps
Deposit Growth (YoY)-7.59%-6.02%-9.01%-7.04%-8.56%-7.14%-2.06%-2.41%+463 bps
Asset Quality
Nonperforming Loans / Loans0.07%0.03%0.06%0.07%0.14%0.03%0.05%2.12%+205 bps
Net Charge-Offs / Loans0.10%0.09%0.00%0.00%0.01%0.04%0.00%0.07%+7 bps
Allowance / Loans1.97%1.91%1.25%1.21%1.12%1.06%1.05%1.03%-18 bps
Allowance Coverage of NPLs29.8x70.8x21.9x18.3x7.8x42.4x19.3x0.5x-17.8x
Capital
Tier 1 Leverage Ratio9.32%9.61%9.88%9.90%10.32%10.61%10.20%10.13%+24 bps
Total Risk-Based Capital25.98%25.63%26.85%26.15%24.80%24.23%23.56%23.98%-217 bps
Equity / Assets4.63%3.46%4.32%5.03%6.09%6.60%5.77%6.10%+107 bps
Liquidity & Funding
Loans / Deposits33.25%33.74%32.54%33.52%39.15%39.21%38.36%37.90%+438 bps
Liquid Assets / Assets14.57%16.00%16.73%15.85%8.39%12.85%15.32%15.37%-48 bps
CRE / Total Capitaln/an/an/an/a97.60%89.98%90.94%n/an/a

Source: FFIEC Call Report (031/041/051), as filed. Dollar figures derived from reported amounts in thousands. Ratios computed by CallReports.ai using published regulatory formulas. Income-statement figures are year-to-date as filed, annualized (the UBPR convention). Each quarter includes the ones before it.

CallReports · callreports.ai· Performance TrendsGenerated 2026-10-11

Arlington State Bank

Arlington, MN · Cert 1391 · Peer group: banks under $1B in assets in MN (n=111-113) · Arlco Inc.

State charter, non-member · FDIC · 2 branches

Q2 2026

$56.7MAssets
$20.0MLoans
$52.7MDeposits
$3.5MEquity

Executive Summary

  • Strongest standing: tier 1 capital ratio outperforms 84% of banks under $1B in assets in MN (rank 18 of 113).
  • Widest gap: net interest margin trails 97% of banks under $1B in assets in MN (rank 110 of 113).
  • Overall: at or above the peer median on 2 of 9 directional measures.

Return on Assets

0.11%

Rank 109 of 113

Net Interest Margin

2.52%

Rank 110 of 113

Efficiency Ratio

94.99%

Rank 110 of 113

Equity / Assets

6.10%

Rank 109 of 113

Non-interest income vs. expense

$0.1M$1.4MINCOMEEXPENSE
Unfavorable gap of $1.4M · efficiency ratio beats 4% of banks under $1B in assets in MN
Bank 94.99%Peer median 61.5%Q3 2024Q2 2026Shaded: peer 25th to 75th percentile
MetricYour BankPeer 25thPeer MedianPeer 75thStandingRank8-Qtr TrendPeer Position
Earnings
Return on Assets0.11%0.87%1.20%1.41%Beats 4%109 / 113
Return on Equity1.73%8.92%11.27%13.99%Beats 5%107 / 113
Net Interest Margin2.52%3.42%3.88%4.31%Beats 3%110 / 113
Efficiency Ratio94.99%54.13%61.48%69.86%Beats 4%110 / 113
Asset Quality
Nonperforming Loans / Loans2.12%0.09%0.58%1.82%Beats 21%89 / 111
Net Charge-Offs / Loans0.04%n/a0.00%0.04%Beats 27%82 / 111
Capital
Tier 1 Capital Ratio23.17%11.53%13.31%18.13%Beats 84%18 / 113
Total Risk-Based Capital Ratio23.98%12.12%14.43%19.39%Beats 84%18 / 113
Equity / Assets6.10%8.52%10.10%11.94%Beats 4%109 / 113
Liquidity & Funding
Loans / Deposits37.90%62.08%77.32%88.06%2nd pctl109 / 111
Loans / Assets35.22%55.01%66.35%75.50%5th pctl107 / 113
Brokered Deposits / Depositsn/aNot reported for this institution