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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

4.94%Q2 ’245.17%Q2 ’255.39%Q2 ’26+10%+8%

Non-interest income vs. expense

2.00%Q2 ’242.09%Q2 ’252.14%Q2 ’26+8%+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 1.39%, up 40 bps year over year; NIM at 3.94%.
  • 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 (quarter, annualized)

1.39%+40 bps YoY

Net Interest Margin (quarter, annualized)

3.94%+28 bps YoY

Efficiency Ratio (quarter, annualized)

52.09%-309 bps YoY

Tier 1 Leverage Ratio

11.62%+9 bps YoY

Discrete quarter, annualized.

MetricQ2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets0.99%1.31%1.36%1.14%1.39%+40 bps
Return on Equity9.94%13.09%13.61%11.38%13.39%+346 bps
Net Interest Margin3.66%4.02%3.81%3.79%3.94%+28 bps
Efficiency Ratio55.18%48.75%49.92%54.01%52.09%-309 bps
Non-Interest Burden1.96%1.87%1.85%1.98%1.98%+2 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