F & M Community Bank, National Association

Chatfield, MN · Cert 35595

FDIC

Q2 2002

$9.0MAssets

$6.5MLoans

$7.1MDeposits

$1.8MEquity

Loan mix

Deposit mix

Executive Summary

Earnings: ROA of -1.00%, down 49 bps year over year; NIM at 5.61%.
Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.56%.
Funding: loans stand at 90.96% of deposits as of Q2 2002.

Return on Assets (quarter, annualized)

-1.00%-49 bps YoY

Net Interest Margin (quarter, annualized)

5.61%-167 bps YoY

Efficiency Ratio (quarter, annualized)

104.20%+72 bps YoY

Tier 1 Leverage Ratio

n/a

Discrete quarter, annualized.

Metric	Q4 2000	Q1 2001	Q2 2001	Q3 2001	Q4 2001	Q1 2002	Q2 2002	YoY Δ	Trend
Earnings
Return on Assets	-3.17%	-1.93%	-0.50%	0.45%	-0.93%	-3.07%	-1.00%	-49 bps
Return on Equity	n/a	n/a	-1.47%	1.47%	-3.57%	-14.01%	-4.84%	-338 bps
Net Interest Margin	n/a	5.60%	7.28%	6.75%	7.52%	4.89%	5.61%	-167 bps
Efficiency Ratio	n/a	135.53%	103.48%	118.03%	112.35%	111.48%	104.20%	+72 bps
Non-Interest Burden	n/a	7.80%	7.56%	8.17%	8.56%	5.54%	5.89%	-168 bps
Growth
Asset Growth (YoY)	n/a	n/a	n/a	n/a	77.01%	64.79%	52.00%	n/a
Loan Growth (YoY)	n/a	n/a	n/a	n/a	117.67%	80.58%	49.21%	n/a
Deposit Growth (YoY)	n/a	n/a	n/a	n/a	134.68%	105.62%	80.94%	n/a
Asset Quality
Nonperforming Loans / Loans	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0 bps
Net Charge-Offs / Loans	n/a	0.11%	0.09%	0.16%	0.06%	0.06%	0.56%	+47 bps
Allowance / Loans	n/a	0.99%	0.99%	1.00%	0.90%	1.07%	1.22%	+23 bps
Allowance Coverage of NPLs	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
Total Risk-Based Capital	n/a	47.26%	43.03%	37.29%	31.25%	27.30%	27.76%	-1,527 bps
Equity / Assets	n/a	36.12%	32.29%	29.73%	23.03%	20.87%	20.24%	-1,205 bps
Liquidity & Funding
Loans / Deposits	107.19%	111.84%	110.30%	110.03%	99.42%	98.22%	90.96%	-1,934 bps
Liquid Assets / Assets	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