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First Farmers & Merchants National Bank

Luverne, MN · Cert 5186 · 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

58

Q2 2024Q2 2026peer median (50)

Asset Quality

54

Q2 2024Q2 2026peer median (50)

Profitability

54

Q2 2024Q2 2026peer median (50)

Liquidity

60

Q2 2024Q2 2026peer median

Efficiency

81

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

Luverne, MN · Cert 5186 · 215 Holding Co.

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

Q2 2026

$242.6MAssets
$185.0MLoans
$213.5MDeposits
$26.4MEquity
Loan mix
80%RE $95.0M18%C&I $21.7M1%Consumer $1.7MQ2 2025Q2 2026
Deposit mix
84%Interest-bearing $180.3M16%Noninterest $33.2MQ2 2025Q2 2026

NIM

4.82%Q2 ’245.09%Q2 ’255.32%Q2 ’26+10%+8%

Non-interest income vs. expense

2.05%Q2 ’242.09%Q2 ’252.13%Q2 ’26+4%+1%

Market Position · Sioux Falls, SD-MN · 2026 SOD (annual) · 0.0% share · #27 of 42 inst. · $0.1B of $1127.8B

23.9% Pipestone
18.4% Rock

Executive Summary

  • Earnings: ROA of 1.27%, up 32 bps year over year; NIM at 3.87%.
  • Asset quality: problem loans at 0.85% of loans (+85 bps YoY), with net charge-offs at 0.00%.
  • Capital: tier 1 leverage ratio of 11.62%, up 9 bps from a year ago.
  • Funding: loans stand at 86.63% of deposits as of Q2 2026.

Financial Results

Return on Assets (YTD, annualized)

1.27%+32 bps YoY

Net Interest Margin (YTD, annualized)

3.87%+28 bps YoY

Efficiency Ratio (YTD, annualized)

53.03%-304 bps YoY

Tier 1 Leverage Ratio

11.62%+9 bps YoY

Year to date, annualized, through each quarter.

MetricQ2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets0.94%1.06%1.14%1.14%1.27%+32 bps
Return on Equity9.54%10.75%11.48%11.38%12.32%+279 bps
Net Interest Margin3.59%3.68%3.54%3.79%3.87%+28 bps
Efficiency Ratio56.07%53.40%52.47%54.01%53.03%-304 bps
Non-Interest Burden1.95%1.89%1.79%1.98%1.98%+3 bps
Growth
Asset Growth (YoY)-3.82%1.53%7.53%7.94%7.59%+1,141 bps
Loan Growth (YoY)2.70%1.98%6.38%7.31%7.82%+512 bps
Deposit Growth (YoY)2.33%9.02%7.80%11.96%8.22%+588 bps
Asset Quality
Nonperforming Loans / Loans0.00%0.00%0.35%0.32%0.85%+85 bps
Net Charge-Offs / Loans0.00%0.00%0.00%0.00%0.00%0 bps
Allowance / Loans1.19%1.22%1.10%1.07%1.07%-12 bps
Allowance Coverage of NPLsn/an/a3.2x3.3x1.3xn/a
Capital
Tier 1 Leverage Ratio11.53%11.36%11.00%11.06%11.62%+9 bps
Total Risk-Based Capital15.07%15.37%14.91%14.59%15.31%+24 bps
Equity / Assets10.25%9.84%10.12%9.85%10.87%+62 bps
Liquidity & Funding
Loans / Deposits86.95%79.03%83.76%83.37%86.63%-32 bps
Liquid Assets / Assets1.25%8.86%4.51%5.88%3.02%+178 bps
CRE / Total Capitaln/a123.32%122.36%115.81%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

Luverne, MN · Cert 5186 · 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

$242.6MAssets
$185.0MLoans
$213.5MDeposits
$26.4MEquity

Executive Summary

  • Strongest standing: efficiency ratio outperforms 81% of banks under $1B in assets in MN (rank 23 of 113).
  • Widest gap: nonperforming loans / loans trails 58% of banks under $1B in assets in MN (rank 65 of 111).
  • Overall: at or above the peer median on 7 of 9 directional measures.

Return on Assets

1.28%

Rank 46 of 113

Net Interest Margin

3.87%

Rank 59 of 113

Efficiency Ratio

53.03%

Rank 23 of 113

Equity / Assets

10.87%

Rank 46 of 113

Non-interest income vs. expense

$0.4M$5.3MINCOMEEXPENSE
Unfavorable gap of $4.9M · efficiency ratio beats 81% of banks under $1B in assets in MN
Bank 53.03%Peer median 61.5%Q3 2024Q2 2026Shaded: peer 25th to 75th percentile
MetricYour BankPeer 25thPeer MedianPeer 75thStandingRankPeer Position
Earnings
Return on Assets1.28%0.87%1.20%1.41%Beats 59%46 / 113
Return on Equity11.77%8.92%11.27%13.99%Beats 55%51 / 113
Net Interest Margin3.87%3.42%3.88%4.31%Beats 48%59 / 113
Efficiency Ratio53.03%54.13%61.48%69.86%Beats 81%23 / 113
Asset Quality
Nonperforming Loans / Loans0.85%0.09%0.58%1.82%Beats 42%65 / 111
Net Charge-Offs / Loans0.00%n/a0.00%0.04%Beats 66%39 / 111
Capital
Tier 1 Capital Ratio14.32%11.53%13.31%18.13%Beats 57%49 / 113
Total Risk-Based Capital Ratio15.31%12.12%14.43%19.39%Beats 58%47 / 113
Equity / Assets10.87%8.52%10.10%11.94%Beats 59%46 / 113
Liquidity & Funding
Loans / Deposits86.63%62.08%77.32%88.06%72nd pctl31 / 111
Loans / Assets76.24%55.01%66.35%75.50%77th pctl26 / 113
Brokered Deposits / Depositsn/aNot reported for this institution