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Rural American Bank-Ada

Ada, MN · Cert 8206

FDIC

Q2 2005

$35.1MAssets
$25.9MLoans
$30.6MDeposits
$3.2MEquity
Loan mix
71%RE $5.5M28%C&I $2.1M1%Consumer $0.1MQ2 2004Q2 2005
Deposit mix
83%Interest-bearing $25.5M17%Noninterest $5.2MQ2 2004Q2 2005

NIM

5.71%Q2 ’035.28%Q2 ’045.73%Q2 ’05-1%+5%

Non-interest income vs. expense

2.39%Q2 ’032.65%Q2 ’042.77%Q2 ’05+10%+14%

Executive Summary

  • Earnings: ROA of 2.49%, up 86 bps year over year; NIM at 4.68%.
  • Asset quality: problem loans at 0.00% of loans (0 bps YoY), with net charge-offs at 0.03%.
  • Funding: loans stand at 84.63% of deposits as of Q2 2005.

Financial Results

Return on Assets (quarter, annualized)

2.49%+86 bps YoY

Net Interest Margin (quarter, annualized)

4.68%+23 bps YoY

Efficiency Ratio (quarter, annualized)

53.00%+156 bps YoY

Tier 1 Leverage Ratio

n/a

Discrete quarter, annualized.

MetricQ2 2004Q3 2004Q4 2004Q1 2005Q2 2005YoY ΔTrend
Earnings
Return on Assets1.63%1.62%1.71%1.39%2.49%+86 bps
Return on Equity17.79%17.50%18.94%15.92%28.13%+1,034 bps
Net Interest Margin4.46%4.66%4.62%4.42%4.68%+23 bps
Efficiency Ratio51.45%50.77%45.86%51.80%53.00%+156 bps
Non-Interest Burden1.95%2.10%1.82%2.08%2.23%+28 bps
Growth
Asset Growth (YoY)-6.46%3.28%-4.87%1.26%5.28%+1,174 bps
Loan Growth (YoY)-4.39%3.44%1.24%6.10%3.53%+792 bps
Deposit Growth (YoY)-11.27%4.73%-5.72%2.00%10.39%+2,165 bps
Asset Quality
Nonperforming Loans / Loans0.00%0.00%0.00%0.00%0.00%0 bps
Net Charge-Offs / Loans0.02%0.03%0.02%0.03%0.03%+1 bps
Allowance / Loans1.33%1.22%1.28%1.30%1.27%-6 bps
Allowance Coverage of NPLsn/an/an/an/an/an/an/a
Capital
Tier 1 Leverage Ration/an/an/an/an/an/an/a
Total Risk-Based Capital11.93%11.45%12.16%11.20%11.77%-16 bps
Equity / Assets9.34%9.19%8.88%8.58%9.09%-25 bps
Liquidity & Funding
Loans / Deposits90.23%88.16%77.41%84.21%84.63%-560 bps
Liquid Assets / Assets0.00%0.00%0.00%0.00%0.00%0 bps
CRE / Total Capitaln/an/an/an/an/an/an/a