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First Farmers & Merchants National Bank

Fairmont, MN · Cert 33131 · 215 Holding Co.

National charter · OCC · 2 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 MN3

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 MN (n=111 to 113). 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

38

Q2 2024Q2 2026peer median (50)

Asset Quality

48

Q2 2024Q2 2026peer median (50)

Profitability

46

Q2 2024Q2 2026peer median (50)

Liquidity

0

Q2 2024Q2 2026peer median

Efficiency

44

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

First Farmers & Merchants National Bank

Fairmont, MN · Cert 33131 · 215 Holding Co.

National charter · OCC · 5 affiliate banks · 2 branches (24 in holding)

Q2 2026

$140.4MAssets
$116.5MLoans
$115.4MDeposits
$13.9MEquity
Loan mix
79%RE $77.2M16%C&I $16.0M4%Consumer $4.2MQ2 2025Q2 2026
Deposit mix
85%Interest-bearing $98.1M15%Noninterest $17.3MQ2 2025Q2 2026

NIM

5.79%Q2 ’245.95%Q2 ’256.01%Q2 ’26+4%+7%

Non-interest income vs. expense

2.75%Q2 ’242.79%Q2 ’252.71%Q2 ’26-1%-4%

Market Position · Minneapolis-St. Paul-Bloomington, MN-WI · 2026 SOD (annual) · 0.0% share · #115 of 125 inst. · $0.0B of $253.2B

6.8% Martin
0.1% Ramsey

Executive Summary

  • Earnings: ROA of 1.02%, up 31 bps year over year; NIM at 4.07%.
  • Asset quality: problem loans at 0.06% of loans (-17 bps YoY), with net charge-offs at 0.20%.
  • Capital: tier 1 leverage ratio of 10.59%, down 44 bps from a year ago.
  • Funding: loans stand at 101.02% of deposits as of Q2 2026.

Financial Results

Return on Assets (YTD, annualized)

1.02%+31 bps YoY

Net Interest Margin (YTD, annualized)

4.07%+26 bps YoY

Efficiency Ratio (YTD, annualized)

62.89%-637 bps YoY

Tier 1 Leverage Ratio

10.59%-44 bps YoY

Year to date, annualized, through each quarter.

MetricQ2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets0.72%0.71%0.75%0.96%1.02%+31 bps
Return on Equity7.45%7.38%7.85%10.13%10.68%+324 bps
Net Interest Margin3.81%3.78%3.67%3.86%4.07%+26 bps
Efficiency Ratio69.26%68.26%67.48%62.95%62.89%-637 bps
Non-Interest Burden2.57%2.51%2.40%2.36%2.47%-10 bps
Growth
Asset Growth (YoY)-4.57%-2.74%5.20%8.32%7.22%+1,179 bps
Loan Growth (YoY)-3.77%-0.66%4.82%9.54%7.32%+1,109 bps
Deposit Growth (YoY)5.54%4.87%9.39%7.83%4.05%-150 bps
Asset Quality
Nonperforming Loans / Loans0.24%0.20%0.17%0.34%0.06%-17 bps
Net Charge-Offs / Loans0.01%0.00%0.04%0.37%0.20%+19 bps
Allowance / Loans1.31%1.33%1.32%1.16%1.19%-12 bps
Allowance Coverage of NPLs5.5x6.8x7.6x3.4x18.7x+13.2x
Capital
Tier 1 Leverage Ratio11.03%10.73%10.42%10.07%10.59%-44 bps
Total Risk-Based Capital13.42%13.17%13.34%12.64%13.04%-39 bps
Equity / Assets9.89%9.65%9.33%9.52%9.92%+3 bps
Liquidity & Funding
Loans / Deposits97.93%97.22%91.31%99.07%101.02%+309 bps
Liquid Assets / Assets3.43%4.75%9.77%2.97%3.20%-23 bps
CRE / Total Capitaln/a231%211%229%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

First Farmers & Merchants National Bank

Fairmont, MN · Cert 33131 · Peer group: banks under $1B in assets in MN (n=111-113) · 215 Holding Co.

National charter · OCC · 5 affiliate banks · 2 branches (24 in holding)

Q2 2026

$140.4MAssets
$116.5MLoans
$115.4MDeposits
$13.9MEquity

Executive Summary

  • Strongest standing: nonperforming loans / loans outperforms 79% of banks under $1B in assets in MN (rank 24 of 111).
  • Widest gap: net charge-offs / loans trails 83% of banks under $1B in assets in MN (rank 93 of 111).
  • Overall: at or above the peer median on 2 of 9 directional measures.

Return on Assets

1.03%

Rank 69 of 113

Net Interest Margin

4.07%

Rank 44 of 113

Efficiency Ratio

62.89%

Rank 64 of 113

Equity / Assets

9.92%

Rank 62 of 113

Non-interest income vs. expense

$0.3M$3.8MINCOMEEXPENSE
Unfavorable gap of $3.5M · efficiency ratio beats 44% of banks under $1B in assets in MN
Bank 62.89%Peer median 61.5%Q3 2024Q2 2026Shaded: peer 25th to 75th percentile
MetricYour BankPeer 25thPeer MedianPeer 75thStandingRankPeer Position
Earnings
Return on Assets1.03%0.87%1.20%1.41%Beats 39%69 / 113
Return on Equity10.43%8.92%11.27%13.99%Beats 39%69 / 113
Net Interest Margin4.07%3.42%3.88%4.31%Beats 61%44 / 113
Efficiency Ratio62.89%54.13%61.48%69.86%Beats 44%64 / 113
Asset Quality
Nonperforming Loans / Loans0.06%0.09%0.58%1.82%Beats 79%24 / 111
Net Charge-Offs / Loans0.10%n/a0.00%0.04%Beats 17%93 / 111
Capital
Tier 1 Capital Ratio11.91%11.53%13.31%18.13%Beats 32%77 / 113
Total Risk-Based Capital Ratio13.04%12.12%14.43%19.39%Beats 38%70 / 113
Equity / Assets9.92%8.52%10.10%11.94%Beats 45%62 / 113
Liquidity & Funding
Loans / Deposits101.02%62.08%77.32%88.06%90th pctl11 / 111
Loans / Assets82.97%55.01%66.35%75.50%88th pctl13 / 113
Brokered Deposits / Depositsn/aNot reported for this institution