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Sterling Federal Bank, Federal Savings Bank

Sterling, IL · Cert 27664

State savings bank · OCC · 9 branches

Q2 2026

$481.6MAssets
$338.0MLoans
$403.4MDeposits
$34.9MEquity
Loan mix
95%RE $326.5M4%C&I $15.3M0%Consumer $1.3MQ2 2025Q2 2026
Deposit mix
85%Interest-bearing $342.6M15%Noninterest $60.8MQ2 2025Q2 2026

NIM

4.78%Q2 ’244.61%Q2 ’254.83%Q2 ’26-3%+16%

Non-interest income vs. expense

2.88%Q2 ’243.17%Q2 ’253.49%Q2 ’26+13%+9%

Executive Summary

  • Earnings: ROA of -4.35%, down 462 bps year over year; NIM at 3.44%.
  • Asset quality: problem loans at 6.26% of loans (+47 bps YoY), with net charge-offs at 5.36%.
  • Capital: tier 1 leverage ratio of 7.67%, down 59 bps from a year ago.
  • Funding: loans stand at 83.79% of deposits as of Q2 2026.

Financial Results

Return on Assets (quarter, annualized)

-4.35%-462 bps YoY

Net Interest Margin (quarter, annualized)

3.44%+48 bps YoY

Efficiency Ratio (quarter, annualized)

85.50%-393 bps YoY

Tier 1 Leverage Ratio

7.67%-59 bps YoY

Discrete quarter, annualized.

MetricQ2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets0.26%0.07%0.32%-0.18%-4.35%-462 bps
Return on Equity3.84%0.94%4.14%-2.25%-56.85%-6,069 bps
Net Interest Margin2.97%3.33%3.62%3.34%3.44%+48 bps
Efficiency Ratio89.43%87.73%74.64%80.25%85.50%-393 bps
Non-Interest Burden2.58%2.81%2.52%2.54%2.80%+23 bps
Growth
Asset Growth (YoY)-0.48%-6.91%-3.86%-6.66%-7.56%-707 bps
Loan Growth (YoY)0.68%-4.56%-2.70%-3.96%-6.53%-721 bps
Deposit Growth (YoY)4.05%-3.14%-0.72%-1.59%-1.09%-514 bps
Asset Quality
Nonperforming Loans / Loans5.79%5.72%5.46%5.31%6.26%+47 bps
Net Charge-Offs / Loans0.00%0.00%-0.07%2.93%5.36%+536 bps
Allowance / Loans1.80%1.95%2.16%1.89%2.99%+119 bps
Allowance Coverage of NPLs0.3x0.3x0.4x0.4x0.5x+0.2x
Capital
Tier 1 Leverage Ratio8.27%8.64%8.73%8.62%7.67%-59 bps
Total Risk-Based Capital12.49%12.58%12.99%13.02%11.80%-69 bps
Equity / Assets7.12%7.44%7.91%8.04%7.24%+12 bps
Liquidity & Funding
Loans / Deposits88.67%90.08%88.47%85.07%83.79%-488 bps
Liquid Assets / Assets2.57%2.32%3.07%2.51%1.93%-64 bps
CRE / Total Capitaln/a472%477%486%n/an/a