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Farmers and Merchants State Bank of Appleton

Appleton, MN · Cert 8845 · MPS Investment Co.

State charter, non-member · FDIC · 1 branch

Q2 2026

$62.0MAssets
$51.2MLoans
$53.8MDeposits
$8.0MEquity
Loan mix
82%RE $27.0M13%C&I $4.4M4%Consumer $1.4MQ2 2025Q2 2026
Deposit mix
64%Interest-bearing $34.7M36%Noninterest $19.1MQ2 2025Q2 2026

NIM

5.48%Q2 ’246.10%Q2 ’255.80%Q2 ’26+26%-3%

Non-interest income vs. expense

1.64%Q2 ’242.02%Q2 ’251.62%Q2 ’26+22%-22%

Executive Summary

  • Earnings: ROA of 2.57%, up 39 bps year over year; NIM at 4.63%.
  • Asset quality: problem loans at 1.89% of loans (+32 bps YoY), with net charge-offs at 0.03%.
  • Capital: tier 1 leverage ratio of 12.99%, up 26 bps from a year ago.
  • Funding: loans stand at 95.07% of deposits as of Q2 2026.

Financial Results

Return on Assets (YTD, annualized)

2.57%+39 bps YoY

Net Interest Margin (YTD, annualized)

4.63%-16 bps YoY

Efficiency Ratio (YTD, annualized)

33.42%-677 bps YoY

Tier 1 Leverage Ratio

12.99%+26 bps YoY

Year to date, annualized, through each quarter.

MetricQ2 2025Q3 2025Q4 2025Q1 2026Q2 2026YoY ΔTrend
Earnings
Return on Assets2.18%2.21%2.45%2.54%2.57%+39 bps
Return on Equity17.84%17.80%19.34%19.45%19.68%+184 bps
Net Interest Margin4.79%4.78%4.70%4.68%4.63%-16 bps
Efficiency Ratio40.19%39.44%38.75%34.14%33.42%-677 bps
Non-Interest Burden1.79%1.75%1.44%1.46%1.40%-39 bps
Growth
Asset Growth (YoY)-7.71%-0.98%-1.04%0.60%4.36%+1,207 bps
Loan Growth (YoY)6.38%6.18%2.77%-0.38%-0.94%-732 bps
Deposit Growth (YoY)0.55%1.03%-4.36%-0.30%4.72%+417 bps
Asset Quality
Nonperforming Loans / Loans1.57%1.54%1.90%1.83%1.89%+32 bps
Net Charge-Offs / Loans-0.03%0.02%0.01%0.11%0.03%+6 bps
Allowance / Loans2.25%2.26%2.31%2.40%2.32%+8 bps
Allowance Coverage of NPLs1.4x1.5x1.2x1.3x1.2x-0.2x
Capital
Tier 1 Leverage Ratio12.73%13.15%13.60%12.66%12.99%+26 bps
Total Risk-Based Capital12.73%13.15%13.60%12.66%12.99%+26 bps
Equity / Assets12.56%13.09%13.58%12.58%12.96%+40 bps
Liquidity & Funding
Loans / Deposits100.50%103.54%101.43%92.64%95.07%-543 bps
Liquid Assets / Assets0.00%0.00%0.00%8.67%6.62%+662 bps
CRE / Total Capitaln/a43.93%47.28%51.12%n/an/a