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Federation Bank

Washington, IA · Cert 14352 · Washington Bcorp

State charter, non-member · FDIC · 4 branches

Q2 2026

$155.8MAssets
$82.9MLoans
$133.8MDeposits
$14.6MEquity
Loan mix
74%RE $51.6M20%C&I $14.1M6%Consumer $4.5MQ2 2025Q2 2026
Deposit mix
75%Interest-bearing $101.0M25%Noninterest $32.8MQ2 2025Q2 2026

NIM

4.41%Q2 ’244.48%Q2 ’254.75%Q2 ’26-2%+8%

Non-interest income vs. expense

2.92%Q2 ’242.62%Q2 ’252.54%Q2 ’26-12%-6%

Market Position · Iowa City, IA · 2026 SOD (annual) · 2.0% share · #8 of 20 inst. · $0.1B of $5.9B

11.7% Washington
4.7% Keokuk

Executive Summary

  • Earnings: ROA of 1.21%, up 30 bps year over year; NIM at 3.68%.
  • Asset quality: problem loans at 0.20% of loans (-74 bps YoY), with net charge-offs at 0.00%.
  • Capital: tier 1 leverage ratio of 10.49%, up 69 bps from a year ago.
  • Funding: loans stand at 61.94% of deposits as of Q2 2026.

Financial Results

Return on Assets (quarter, annualized)

1.21%+30 bps YoY

Net Interest Margin (quarter, annualized)

3.68%+27 bps YoY

Efficiency Ratio (quarter, annualized)

62.15%-717 bps YoY

Tier 1 Leverage Ratio

10.49%+69 bps YoY

Discrete quarter, annualized.

MetricQ2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets0.91%0.99%1.06%1.71%1.21%+30 bps
Return on Equity11.36%11.23%11.30%17.87%12.73%+137 bps
Net Interest Margin3.42%3.54%3.63%4.45%3.68%+27 bps
Efficiency Ratio69.32%68.49%65.95%55.67%62.15%-717 bps
Non-Interest Burden2.23%2.27%2.29%2.28%2.11%-12 bps
Growth
Asset Growth (YoY)6.55%-4.29%5.66%-1.42%4.62%-193 bps
Loan Growth (YoY)10.17%11.04%11.14%6.78%10.74%+57 bps
Deposit Growth (YoY)6.08%-4.75%3.75%-2.61%3.61%-247 bps
Asset Quality
Nonperforming Loans / Loans0.94%0.35%0.28%0.40%0.20%-74 bps
Net Charge-Offs / Loans-0.01%0.00%0.00%-0.13%0.00%+1 bps
Allowance / Loans1.59%1.52%1.46%1.49%1.47%-12 bps
Allowance Coverage of NPLs1.7x4.3x5.3x3.8x7.3x+5.6x
Capital
Tier 1 Leverage Ratio9.80%10.07%10.01%10.52%10.49%+69 bps
Total Risk-Based Capital9.80%10.07%10.01%10.52%10.49%+69 bps
Equity / Assets8.22%9.33%9.43%9.69%9.38%+116 bps
Liquidity & Funding
Loans / Deposits57.95%60.81%61.93%61.58%61.94%+399 bps
Liquid Assets / Assets2.66%1.99%5.10%4.84%7.34%+467 bps
CRE / Total Capitaln/a37.09%43.75%48.89%n/an/a