Hills Bank Kalona

Kalona, IA · Cert 34361

FDIC

Q3 2001

$60.6MAssets

$30.1MLoans

$52.2MDeposits

$6.6MEquity

Deposit mix

Executive Summary

Earnings: ROA of 0.60%, down 19 bps year over year; NIM at 2.17%.
Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.00%.
Funding: loans stand at 57.70% of deposits as of Q3 2001.

Return on Assets (quarter, annualized)

0.60%-19 bps YoY

Net Interest Margin (quarter, annualized)

2.17%

Efficiency Ratio (quarter, annualized)

57.98%

Tier 1 Leverage Ratio

n/a

Discrete quarter, annualized.

Metric	Q4 1999	Q1 2000	Q2 2000	Q3 2000	Q4 2000	Q1 2001	Q2 2001	Q3 2001	YoY Δ	Trend
Earnings
Return on Assets	0.72%	0.80%	0.82%	0.80%	0.80%	0.69%	0.63%	0.60%	-19 bps
Return on Equity	n/a	n/a	n/a	n/a	n/a	n/a	5.69%	5.48%	n/a
Net Interest Margin	n/a	n/a	n/a	n/a	n/a	2.44%	2.24%	2.17%	n/a
Efficiency Ratio	n/a	n/a	n/a	n/a	n/a	56.53%	58.25%	57.98%	n/a
Non-Interest Burden	n/a	n/a	n/a	n/a	n/a	1.23%	1.13%	1.10%	n/a
Growth
Asset Growth (YoY)	13.79%	14.12%	18.05%	20.47%	22.72%	23.56%	18.90%	15.44%	-503 bps
Loan Growth (YoY)	47.03%	11.29%	12.39%	9.56%	21.40%	22.32%	18.12%	19.13%	+957 bps
Deposit Growth (YoY)	15.30%	14.68%	16.94%	21.33%	23.44%	23.23%	19.62%	14.44%	-689 bps
Asset Quality
Nonperforming Loans / Loans	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0 bps
Net Charge-Offs / Loans	n/a	n/a	n/a	n/a	n/a	0.59%	-0.04%	0.00%	n/a
Allowance / Loans	n/a	n/a	n/a	n/a	n/a	0.84%	0.89%	0.93%	n/a
Allowance Coverage of NPLs	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Capital
Tier 1 Leverage Ratio	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Total Risk-Based Capital	n/a	n/a	n/a	n/a	n/a	15.28%	16.66%	16.96%	n/a
Equity / Assets	n/a	n/a	n/a	n/a	n/a	11.08%	11.06%	10.94%	n/a
Liquidity & Funding
Loans / Deposits	58.93%	60.05%	59.80%	55.43%	57.96%	59.60%	59.05%	57.70%	+227 bps
Liquid Assets / Assets	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0 bps
CRE / Total Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a