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Highland Bank

Saint Paul, MN · Cert 16111 · Highland Bancshares Inc.

State charter, non-member · FDIC · 8 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 the Minneapolis-St. Paul-Bloomington, MN-WI area3

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 the Minneapolis-St. Paul-Bloomington, MN-WI area (n=53). 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

16

Q2 2024Q2 2026peer median (50)

Asset Quality

12

Q2 2024Q2 2026peer median (50)

Profitability

18

Q2 2024Q2 2026peer median (50)

Liquidity

100

Q2 2024Q2 2026peer median

Efficiency

13

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

Highland Bank

Saint Paul, MN · Cert 16111 · Highland Bancshares Inc.

State charter, non-member · FDIC · 8 branches

Q2 2026

$775.9MAssets
$563.2MLoans
$684.4MDeposits
$57.1MEquity
Loan mix
74%RE $409.9M26%C&I $141.1M0%Consumer $0.4MQ2 2025Q2 2026
Deposit mix
75%Interest-bearing $512.9M25%Noninterest $171.5MQ2 2025Q2 2026

NIM

5.55%Q2 ’245.54%Q2 ’255.52%Q2 ’26+8%+2%

Non-interest income vs. expense

3.01%Q2 ’243.03%Q2 ’253.01%Q2 ’26-2%+1%

Market Position · Minneapolis-St. Paul-Bloomington, MN-WI · 2026 SOD (annual) · 0.3% share · #27 of 125 inst. · $0.6B of $253.2B

0.2% Hennepin
0.3% Ramsey
2.8% Wright
0.9% St. Louis

Executive Summary

  • Earnings: ROA of 0.03%, down 28 bps year over year; NIM at 3.77%.
  • Asset quality: problem loans at 2.51% of loans (+61 bps YoY), with net charge-offs at 0.79%.
  • Capital: tier 1 leverage ratio of 8.58%, down 6 bps from a year ago.
  • Funding: loans stand at 82.29% of deposits as of Q2 2026.

Financial Results

Return on Assets (YTD, annualized)

0.03%-28 bps YoY

Net Interest Margin (YTD, annualized)

3.77%+6 bps YoY

Efficiency Ratio (YTD, annualized)

74.29%-72 bps YoY

Tier 1 Leverage Ratio

8.58%-6 bps YoY

Year to date, annualized, through each quarter.

MetricQ2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets0.31%0.37%0.01%0.23%0.03%-28 bps
Return on Equity4.28%5.11%0.14%3.11%0.44%-385 bps
Net Interest Margin3.70%3.77%3.79%3.70%3.77%+6 bps
Efficiency Ratio75.01%74.30%71.10%75.76%74.29%-72 bps
Non-Interest Burden2.73%2.75%2.63%2.78%2.76%+3 bps
Growth
Asset Growth (YoY)2.53%-1.04%0.58%-2.96%-0.30%-283 bps
Loan Growth (YoY)2.02%3.10%0.70%-0.11%0.83%-119 bps
Deposit Growth (YoY)0.18%1.30%0.81%-2.63%4.43%+425 bps
Asset Quality
Nonperforming Loans / Loans1.90%1.90%1.11%1.12%2.51%+61 bps
Net Charge-Offs / Loans0.01%0.17%0.95%0.13%0.79%+77 bps
Allowance / Loans2.01%2.06%2.33%2.50%2.53%+52 bps
Allowance Coverage of NPLs1.1x1.1x2.1x2.2x1.0x-0.1x
Capital
Tier 1 Leverage Ratio8.64%8.70%8.43%8.65%8.58%-6 bps
Total Risk-Based Capital11.53%11.11%11.70%11.52%11.36%-16 bps
Equity / Assets7.23%7.55%7.50%7.44%7.36%+13 bps
Liquidity & Funding
Loans / Deposits85.22%83.40%82.92%82.26%82.29%-293 bps
Liquid Assets / Assets0.20%1.00%1.19%1.72%0.90%+70 bps
CRE / Total Capitaln/a440%437%432%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

Highland Bank

Saint Paul, MN · Cert 16111 · Peer group: banks under $1B in assets in the Minneapolis-St. Paul-Bloomington, MN-WI area (n=53) · Highland Bancshares Inc.

State charter, non-member · FDIC · 8 branches

Q2 2026

$775.9MAssets
$563.2MLoans
$684.4MDeposits
$57.1MEquity

Executive Summary

  • Strongest standing: net interest margin outperforms 47% of banks under $1B in assets in the Minneapolis-St. Paul-Bloomington, MN-WI area (rank 28 of 53).
  • Widest gap: return on equity trails 96% of banks under $1B in assets in the Minneapolis-St. Paul-Bloomington, MN-WI area (rank 51 of 53).
  • Overall: at or above the peer median on 0 of 9 directional measures.

Return on Assets

0.03%

Rank 51 of 53

Net Interest Margin

3.77%

Rank 28 of 53

Efficiency Ratio

75.16%

Rank 47 of 53

Equity / Assets

7.36%

Rank 46 of 53

Non-interest income vs. expense

$1.9M$23.4MINCOMEEXPENSE
Unfavorable gap of $21.5M · efficiency ratio beats 13% of banks under $1B in assets in the Minneapolis-St. Paul-Bloomington, MN-WI area
Bank 75.16%Peer median 65.1%Q3 2024Q2 2026Shaded: peer 25th to 75th percentile
MetricYour BankPeer 25thPeer MedianPeer 75thStandingRankPeer Position
Earnings
Return on Assets0.03%0.73%1.11%1.30%Beats 4%51 / 53
Return on Equity0.44%7.88%12.20%14.12%Beats 4%51 / 53
Net Interest Margin3.77%3.39%3.77%4.09%Beats 47%28 / 53
Efficiency Ratio75.16%56.05%65.05%71.57%Beats 13%47 / 53
Asset Quality
Nonperforming Loans / Loans2.51%0.14%0.52%1.20%Beats 13%47 / 53
Net Charge-Offs / Loans0.40%0.00%0.01%0.08%Beats 11%48 / 53
Capital
Tier 1 Capital Ratio10.10%10.73%12.98%15.08%Beats 13%46 / 53
Total Risk-Based Capital Ratio11.36%11.49%13.79%16.34%Beats 21%42 / 53
Equity / Assets7.36%8.08%9.25%10.72%Beats 13%46 / 53
Liquidity & Funding
Loans / Deposits82.29%72.13%82.29%93.80%49th pctl27 / 53
Loans / Assets72.58%63.64%71.80%79.37%51st pctl26 / 53
Brokered Deposits / Depositsn/aNot reported for this institution