Nk\novartis

Minneapolis, MN · Charter 64092

Q2 2000

Board Package

Performance Trends and Peer Comparison

Part 1Performance Trends, own institution only2

Part 2Peer Comparison, not published for this institution and quartern/a

Basis

Quarter: Q2 2000, the quarter ended June 30, 2000, on both parts.

Income statement: year to date as filed, annualized, on both parts.

Balance sheet: as filed at quarter end.

No peer standings are published for this institution and quarter.

Peer groups below the disclosure floor are suppressed.

Minneapolis, MN · Charter 64092

Q2 2000

$4.0MAssets

$3.1MLoans

$3.4MShares

n/aNet Worth

Return on Assets (YTD, annualized)

1.03%-201 bps YoY

Net Interest Margin (YTD, annualized)

4.58%

Efficiency Ratio (YTD, annualized)

78.52%

Net Worth / Assets

n/a

Year to date, annualized, through each quarter.

Metric	Q4 1996	Q2 1997	Q4 1997	Q2 1998	Q4 1998	Q2 1999	Q4 1999	Q2 2000	YoY Δ	Trend
Earnings
Return on Assets	4.45%	4.33%	3.76%	3.04%	3.47%	3.41%	0.43%	1.03%	-201 bps
Return on Equity	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Net Interest Margin	n/a	n/a	n/a	n/a	n/a	n/a	4.35%	4.58%	n/a
Efficiency Ratio	n/a	n/a	n/a	n/a	n/a	n/a	81.58%	78.52%	n/a
Growth
Asset Growth (YoY)	21.57%	24.59%	11.40%	0.12%	1.78%	8.23%	6.04%	12.44%	+1,232 bps
Loan Growth (YoY)	20.46%	15.56%	12.26%	9.37%	-7.91%	-11.11%	-6.78%	11.10%	+173 bps
Share Growth (YoY)	22.11%	26.38%	11.76%	-1.26%	0.90%	8.59%	5.95%	12.62%	+1,388 bps
Asset Quality
Delinquent Loans / Loans	1.95%	1.93%	2.75%	2.99%	3.24%	2.17%	1.96%	0.80%	-219 bps
Net Charge-Offs / Loans	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Allowance / Loans	0.81%	0.45%	0.88%	0.92%	1.08%	1.41%	1.43%	0.98%	+6 bps
Capital
Risk-Based Capital	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Net Worth / Assets	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a	n/a
Liquidity & Funding
Loans / Shares	91.14%	96.69%	100.07%	93.47%	83.18%	79.15%	88.05%	92.21%	-126 bps
Liquid Assets / Assets	20.61%	16.54%	13.83%	18.53%	27.78%	32.37%	24.09%	21.47%	+295 bps