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Sterling State Bank

Austin, MN · Cert 17863 · Sterling Financial Group Inc.

State charter, non-member · FDIC · 6 branches

Q2 2026

$461.9MAssets
$308.5MLoans
$359.5MDeposits
$31.8MEquity
Loan mix
90%RE $282.0M9%C&I $28.5M1%Consumer $4.0MQ3 2024Q2 2026
Deposit mix
76%Interest-bearing $272.2M24%Noninterest $87.4MQ3 2024Q2 2026

Market Position · Rochester, MN · 2026 SOD (annual) · 2.9% share · #11 of 34 inst. · $0.2B of $7.6B

4.0% Olmsted
0.5% Dakota
5.7% Mower
1.3% Scott

Executive Summary

  • Earnings: ROA of 0.77%, up 32 bps year over year; NIM at 3.35%.
  • Asset quality: problem loans at 0.47% of loans (+38 bps YoY), with net charge-offs at 0.00%.
  • Capital: tier 1 leverage ratio of 8.54%, up 133 bps from a year ago.
  • Funding: loans stand at 85.81% of deposits as of Q2 2026.

Return on Assets (YTD, annualized)

0.77%+32 bps YoY

Net Interest Margin (YTD, annualized)

3.35%+82 bps YoY

Efficiency Ratio (YTD, annualized)

74.23%-1,010 bps YoY

Tier 1 Leverage Ratio

8.54%+133 bps YoY

NIM

3.91%Q2 ’244.22%Q2 ’254.65%Q2 ’26+20%+33%

Non-interest income vs. expense

2.20%Q2 ’242.47%Q2 ’252.82%Q2 ’26+12%+15%

Year to date, annualized, through each quarter.

MetricQ3 2024Q4 2024Q1 2025Q2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets0.21%0.23%0.48%0.45%0.51%0.50%0.72%0.77%+32 bps
Return on Equity5.46%5.70%10.37%9.29%9.78%9.21%10.82%11.41%+212 bps
Net Interest Margin2.12%2.15%2.51%2.53%2.60%2.86%3.30%3.35%+82 bps
Efficiency Ratio88.99%88.32%86.58%84.33%84.22%82.67%75.43%74.23%-1,010 bps
Non-Interest Burden1.84%1.86%2.12%2.07%2.13%2.26%2.37%2.38%+30 bps
Growth
Asset Growth (YoY)7.02%-10.30%-3.95%1.28%-10.58%-1.85%-9.86%-10.56%-1,184 bps
Loan Growth (YoY)8.54%9.94%9.26%6.87%3.49%5.50%4.94%3.35%-352 bps
Deposit Growth (YoY)0.34%-5.66%-2.21%1.43%-0.89%0.57%0.64%5.37%+393 bps
Asset Quality
Nonperforming Loans / Loans0.09%0.09%0.08%0.08%0.08%0.47%0.48%0.47%+38 bps
Net Charge-Offs / Loans0.00%0.00%0.00%0.00%0.00%0.00%0.00%0.00%0 bps
Allowance / Loans1.16%1.13%1.12%1.10%1.10%1.15%1.16%1.17%+6 bps
Allowance Coverage of NPLs13.5x12.9x13.4x13.1x13.3x2.5x2.4x2.5x-10.6x
Capital
Tier 1 Leverage Ratio6.98%6.95%7.09%7.22%7.47%8.13%8.53%8.54%+133 bps
Total Risk-Based Capital13.44%13.39%13.36%13.45%13.78%13.53%13.69%13.98%+53 bps
Equity / Assets4.80%4.44%4.86%5.29%6.28%6.53%6.80%6.88%+159 bps
Liquidity & Funding
Loans / Deposits81.78%82.63%82.84%87.48%85.39%86.68%86.37%85.81%-167 bps
Liquid Assets / Assets4.41%0.14%0.66%0.26%1.17%0.53%0.50%1.57%+131 bps
CRE / Total Capitaln/an/an/an/a567%570%586%n/an/a