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Valley Bank Minnesota

Jordan, MN · Cert 33311

FDIC

Q2 2009

$42.3MAssets
$22.7MLoans
$34.5MDeposits
$5.8MEquity
Loan mix
86%RE $15.3M13%C&I $2.3M1%Consumer $0.1MQ2 2008Q2 2009
Deposit mix
87%Interest-bearing $29.9M13%Noninterest $4.6MQ2 2008Q2 2009

NIM

5.67%Q2 ’074.53%Q2 ’083.85%Q2 ’09-12%+4%

Non-interest income vs. expense

2.88%Q2 ’072.35%Q2 ’082.91%Q2 ’09-15%+34%

Executive Summary

  • Earnings: ROA of 0.13%, down 92 bps year over year; NIM at 2.93%.
  • Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 2.13%.
  • Funding: loans stand at 65.85% of deposits as of Q2 2009.

Financial Results

Return on Assets (quarter, annualized)

0.13%-92 bps YoY

Net Interest Margin (quarter, annualized)

2.93%+11 bps YoY

Efficiency Ratio (quarter, annualized)

80.74%+1,363 bps YoY

Tier 1 Leverage Ratio

n/a

Discrete quarter, annualized.

MetricQ2 2008Q3 2008Q4 2008Q1 2009Q2 2009YoY ΔTrend
Earnings
Return on Assets1.05%1.15%0.61%0.36%0.13%-92 bps
Return on Equity7.73%8.56%4.47%2.61%0.96%-677 bps
Net Interest Margin2.83%2.91%2.87%2.88%2.93%+11 bps
Efficiency Ratio67.11%62.00%63.50%72.60%80.74%+1,363 bps
Non-Interest Burden1.68%1.53%1.55%1.93%2.24%+56 bps
Growth
Asset Growth (YoY)0.96%-1.04%-6.93%-3.07%-3.94%-491 bps
Loan Growth (YoY)-4.43%-4.97%8.67%11.30%1.38%+581 bps
Deposit Growth (YoY)1.93%-1.96%-8.57%-3.71%-6.29%-822 bps
Asset Quality
Nonperforming Loans / Loans0.00%0.00%0.00%0.00%0.00%0 bps
Net Charge-Offs / Loans0.04%-0.02%0.30%0.03%2.13%+209 bps
Allowance / Loans1.55%1.67%1.72%2.01%1.88%+33 bps
Allowance Coverage of NPLsn/an/an/an/an/an/an/a
Capital
Tier 1 Leverage Ration/an/an/an/an/an/an/a
Total Risk-Based Capital13.85%14.32%13.50%13.14%13.63%-22 bps
Equity / Assets13.50%13.44%13.85%13.87%13.76%+27 bps
Liquidity & Funding
Loans / Deposits60.87%60.23%68.39%69.94%65.85%+498 bps
Liquid Assets / Assets0.00%0.00%0.00%0.00%2.35%+235 bps
CRE / Total Capitaln/an/an/an/an/an/an/a