LPL Employees

Duluth, MN · Charter 24586

Q2 2001

Board Package

Performance Trends and Peer Comparison

Part 1Performance Trends, own institution only2

Part 2Peer Comparison, not published for this institution and quartern/a

Basis

Quarter: Q2 2001, the quarter ended June 30, 2001, on both parts.

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

Balance sheet: as filed at quarter end.

No peer standings are published for this institution and quarter.

Peer groups below the disclosure floor are suppressed.

Duluth, MN · Charter 24586

Q2 2001

$3.3MAssets

$2.3MLoans

$3.0MShares

$365KNet Worth

Return on Assets (YTD, annualized)

0.53%-345 bps YoY

Net Interest Margin (YTD, annualized)

2.76%

Efficiency Ratio (YTD, annualized)

80.96%

Net Worth / Assets

10.98%

Year to date, annualized, through each quarter.

Metric	Q4 1997	Q2 1998	Q4 1998	Q2 1999	Q4 1999	Q2 2000	Q4 2000	Q2 2001	YoY Δ	Trend
Earnings
Return on Assets	4.87%	4.20%	4.05%	3.97%	0.69%	0.54%	0.53%	0.53%	-345 bps
Return on Equity	n/a	n/a	n/a	n/a	n/a	n/a	4.82%	4.79%	n/a
Net Interest Margin	n/a	n/a	n/a	n/a	2.95%	2.84%	3.02%	2.76%	n/a
Efficiency Ratio	n/a	n/a	n/a	n/a	74.41%	80.85%	82.62%	80.96%	n/a
Growth
Asset Growth (YoY)	n/a	n/a	-8.55%	-9.52%	1.58%	-4.66%	-11.98%	-9.13%	+39 bps
Loan Growth (YoY)	n/a	n/a	9.84%	15.55%	12.15%	-2.63%	6.60%	-5.56%	-2,112 bps
Share Growth (YoY)	n/a	n/a	-9.73%	-10.94%	0.59%	-6.19%	-14.39%	-11.29%	-34 bps
Asset Quality
Delinquent Loans / Loans	1.10%	0.50%	1.07%	1.15%	3.25%	1.57%	2.83%	0.59%	-55 bps
Net Charge-Offs / Loans	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Allowance / Loans	0.32%	0.42%	0.43%	0.43%	0.44%	0.47%	0.43%	0.32%	-11 bps
Capital
Risk-Based Capital	n/a	n/a	n/a	n/a	n/a	n/a	10.90%	10.98%	n/a
Net Worth / Assets	n/a	n/a	n/a	n/a	n/a	n/a	10.90%	10.98%	n/a
Liquidity & Funding
Loans / Shares	66.22%	70.90%	68.57%	74.62%	73.83%	73.59%	85.38%	79.43%	+481 bps
Liquid Assets / Assets	31.78%	26.49%	32.38%	29.82%	24.78%	26.10%	21.95%	27.33%	-249 bps