BANK ANALYTICAL REPORT

First State Bank of Kiowa Kansas
Kiowa, KS
Star Rating:
Derived from Financial Data Reported as of September 30, 2014

BauerFinancial, Inc.
P.O. Box 143520, Coral Gables, FL 33114-3520
800.388.6686 FAX 800.230.9569
VISIT OUR WEB SITE: www.bauerfinancial.com

Bank and Credit Union data compiled from financial data for the period noted, as reported to federal regulators. The financial data obtained from these sources is
consistently reliable, although; the accuracy and completeness of the data cannot be guaranteed by BauerFinancial, Inc.. BauerFinancial relies upon this data in its
judgment and in rendering its opinion (e.g. determination of star ratings) as well as supplying the data fields incorporated herein. BauerFinancial, Inc. is not a financial
advisor; it is an independent bank research firm. BauerFinancial is a registered trademark. Any unauthorized use of its content, logos, name, and/or Star-ratings is
forbidden.
Copyright BauerFinancial Inc., Coral Gables, FL 33114-3520. 1.800.388.6686.
Reproduction, in whole or in part, without permission is prohibited.
www.bauerfinancial.com

that marginally performing institutions sometimes give themselves the benefit of the doubt when filing their reports. FL 33114-3520. unless otherwise noted. Coral Gables. an astute investor would agree. More than twenty-five years of experience has shown this to be a prudent course of action. These institutions are on BauerFinancial's Recommended Report. however. was compiled from data reported to the Federal Regulators. Although the information obtained from these sources is consistently reliable. the accuracy and completeness of the data cannot be guaranteed by BauerFinancial. the following groupings were used: Superior. in whole or in part. :Adequate. STAR RATINGS SYSTEM BauerFinancial star ratings classify each institution based upon a complex formula factoring in current and historical data. it is an independent bank research firm. BauerFinancial is a registered trademark. to: profitability. and/or Star-ratings is forbidden. Negative trends are projected forward to compensate for the lag time in the data. Institutions that are too new to rate. regulatory compliance.com . Inc. historical trends. Box 143520 Coral Gables.6686. :Excellent. the accuracy and completeness of this data cannot be guaranteed by BauerFinancial Inc. repossessed assets. 1. reserves.bauerfinancial.388. PEER GROUPS Group 1 Institutions with Domestic & Foreign Offices Group 2 Domestic Offices only – Assets $1 billion and up Group 3 $500 – 999 million Group 4 $300 – 499 million Group 5 $200 – 299 million Group 6 $100 – 199 million Group 7 $50 – 99 million Group 8 $25 – 49 million Group 9 $0 – 24 million Bank and Credit Union data compiled from financial data for the period noted. name. www.388. :Start-up bank.6686 * FAX 800.800. :Good.O. The financial data obtained from these sources is consistently reliable. P. Florida 33114-3520 800. determination of star ratings) as well as supplying the data fields incorporated herein.BauerFinancial Inc. is not a financial advisor.230. logos.. Our historical data helps us detect these variances.g. :Problematic. As a general guideline. :Our lowest rating.. :Troubled. Copyright BauerFinancial Inc. BauerFinancial. but not limited. BauerFinancial relies upon this data in its judgment and in rendering its opinion (e. In fact. These institutions are also on BauerFinancial's Recommended Report. :Institution has failed and/or is operating under FDIC conservatorship. proposed regulations and asset quality. as reported to federal regulators. and experience has shown. although. without permission is prohibited. loan delinquencies. Inc. The first level of evaluation is the capital level of the institution followed by other relevant data including. BauerFinancial employs conservative measures when assigning these ratings and consequently our analysis may be lower than those supplied by other analysts or the institutions themselves. Any unauthorized use of its content.9569 INTRODUCTION The financial data used to prepare this report. Reproduction.

223 0. BauerFinancial is a registered trademark. logos. KS As of September 30.238 0.g. the accuracy and completeness of the data cannot be guaranteed by BauerFinancial. BauerFinancial. 2014 : Interest Income: Interest Expense: 2.187 $80.181 (plus) Non-Interest Income (plus) Gains (losses Securities Transactions) (minus) Non-Interest Expense (minus) Provisions (minus) Tax Provision (per Call Report) (plus) Other Income (Expense) 0. Inc. Inc.033 0. as reported to federal regulators. determination of star ratings) as well as supplying the data fields incorporated herein. & Repos Subordinated Debt Other Borrowed Money Other Liabilities Limited-Life Preferred Stock Total Liabilities: 30. Abbreviated Financial Statements Balance Sheet: ($ millions) Assets: Cash & Due From Banks Securities & Fed Funds Sold Loans (net) Real Estate Owned Premises & Fixed Assets Investments in Subsidiaries Intangible Assets Other Assets Total Assets: 5.000 $70.413 1.269 47. it is an independent bank research firm.000 9.824 0.748 0.763 -0.585 Liabilities & Owner’s Equity: Non-Interest Bearing Deposits Interest Bearing Deposits Fed Funds Purch.695 25.783 0. 2014 A. Analytical Report *****First State Bank of Kiowa Kansas Kiowa.000 0..000 0. The financial data obtained from these sources is consistently reliable.BauerFinancial Inc.764 0.110 Net Interest Income: 2.000 1. is not a financial advisor.000 Net Income: $0.037 1.372 Owner's Equity: Preferred Stock Common Stock & Surplus Retained Earnings Other Equity 0. BauerFinancial relies upon this data in its judgment and in rendering its opinion (e.077 0. Any unauthorized use of its content. although.024 0.788 Bank and Credit Union data compiled from financial data for the period noted.251 0.000 0.374 Total Equity 10. .836 37.585 Income Statement ($ millions) For the Calendar Year-to-Date Ended September 30. and/or Star-ratings is forbidden.291 0. name.213 Total Liabilities and Equity: $80.

88% 1. Please see page 2 for the Perr Group definitions. The financial data obtained from these sources is consistently reliable.59% Bank and Credit Union data compiled from financial data for the period noted. name.9% 19. The quality of an institution's assets is determined by two factors: what specifically is the asset and how does it relate to the entire portfolio. ASSET QUALITY.Current regulatory capital requirements include a leverage capital ratio greater than or equal to 4% and a risk-based capital ratio greater than or equal to 8%.0% 0. BauerFinancial is a registered trademark. Inc. Any unauthorized use of its content..64% 1.16% 1.0% 13.39% 19. Inc. Asset quality can be the difference between survivial and insolvency during periods of poor economic conditions. 2014 B.66% 0. Analytical Report *****First State Bank of Kiowa Kansas Kiowa.38% 0.BauerFinancial Inc.13% Well-Capitalized 11.0% 0.44% 18. is not a financial advisor.0% 0.g. it is an independent bank research firm. KS As of September 30. BauerFinancial relies upon this data in its judgment and in rendering its opinion (e.67% 0. determination of star ratings) as well as supplying the data fields incorporated herein.01% The following five ratios describe the nonperforming assets and reserves in the bank's portfolio: Nonperforming Assets/Total Assets: Delinquent Loans/Total Loans: Repossessd Assets/Total Assets: Net Year-to-Date Chargeoffs/Total Loans: Loan Loss Reserve/Total Loans: Bank Peer Group 0.0% 0.0% 5. although. . logos. The risk-based capital ratio requirement of 8%.62% 8.51% C. Leverage and Capital Ratio Tier 1 Risk-based Capital Ratio Total Risk-based Capital Ratio Regulatory Capital Classification Bank Peer Group 12. CAPITAL ADEQUACY. also includes a limitation that at least 4% of the 8% must be tier 1 capital (stock equity and retained earnings).02% 0. BauerFinancial. as reported to federal regulators. and/or Star-ratings is forbidden. Repossessed Assets/Net Worth: Nonaccrual Loans & Other Loans Past Due over 89 Days/Net Worth: Nonperforming Assets/Net Worth + Reserves (TX Ratio) Bank Peer Group 0. the accuracy and completeness of the data cannot be guaranteed by BauerFinancial.33% 20.

34% 0.3% 14. Continued. excessive lending to insiders can cause problems if the loans are not subject to the same arm’s length underwriting standards as similar loans to other customers.72% 5. and/or Star-ratings is forbidden.. a bank may buy a branch of another bank for more than its book value. ASSET QUALITY. so does that of the bank. BauerFinancial.0% 2. principal shareholders and their related parties (with or without collateral) are not unusual in the banking industry. Any unauthorized use of its content. Intangible Assets/Net Worth: Bank Peer Group 4.41% Intangible assets are acquired by various transactions in which the purchase price exceeds the book value.0% 0. although. The leverage capital ratio on page 4 excludes most intangible as sets.04% 1.35% 22. Inc.75% 3. and foreign loans. Analytical Report *****First State Bank of Kiowa Kansas Kiowa.25% 11. it is an independent bank research firm.52% Loans to executive officers. 2014 C.86% 33. determination of star ratings) as well as supplying the data fields incorporated herein. BauerFinancial is a registered trademark.91% 4.BauerFinancial Inc. Individuals or businesses interested in obtaining a loan or line of credit should check that the bank is actively engaged in that type of lending.92% 17.0% Bank and Credit Union data compiled from financial data for the period noted. Generally speaking.47% 10.83% 0. name.69% Investments in unconsolidated subsidiaries and related companies can be a drain on a bank’s net worth. the more risky loans in a bank’s portfolio are construction.07% 10. BauerFinancial relies upon this data in its judgment and in rendering its opinion (e. the accuracy and completeness of the data cannot be guaranteed by BauerFinancial. the premium paid would be an intangible asset to the purchaser known as “goodwill”.07% 4. For example.71% 8. If the book v alue of the subsidiary declines.0% 0. Inc. c ommercial real estate. Construction & Land Development/Total Loans: Secured by Farmland/Total Loans: Secured by 1-4 Family Residences/Total Loans: Commercial Real Estate/Total Loans: Commercial & Industrial Loans/Total Loans: Loans to Individuals/Total Loans: Loans to Foreign Governments/Total Loans: Other Loans/Total Loans: Bank Peer Group 1. KS As of September 30. The financial data obtained from these sources is consistently reliable. Loans to Insiders/Total Loans: Loans to Insiders/Total Net Worth: Bank Peer Group 0.g.0% 49. Investments in Subsidiaries/Net Worth: Bank Peer Group 0. Undercapitalized banks may be required to limit their lending activity due to an effort to shrink their asset size (thus increasing their capital ratios). as reported to federal regulators.0% 11. Local economic conditions cause regional variances. is not a financial advisor. . However. logos.

43% 2. 2014 D. and/or Star-ratings is forbidden. Inc. Current quarter’s profit: Year-to-date profit: Year ended 12/31/13 profit: Year ended 12/31/12 : Annualized Return on Assets: Annualized Return on Equity: $0. it can lead to a situation of capital inadequacy and/or unprofitability.69% E. it may have to pay a higher rate for the funds than can be obtained on the asset side. growth in a bank is considered normal and desirable.0% 1. If the growth accelerates to a point where it becomes unmanageable. Higher ratios reflect a reliance on funding sources that may not be available in times of financial stress or adverse changes in market conditions. . name. The financial data obtained from these sources is consistently reliable. PROFITABLITY. LIQUIDITY. BauerFinancial relies upon this data in its judgment and in rendering its opinion (e. determination of star ratings) as well as supplying the data fields incorporated herein. however. Analytical Report *****First State Bank of Kiowa Kansas Kiowa. % Change in Assets (year): % Change in Equity (year): Bank Peer Group 1. as the same dollar figure of net income may be good or bad. Standard measures of profitability are Return on Assets and Return on Equity which reflect the percentage of each that has been earned during the current period. Liquidity ratios measure the relationship between current assets and current liabilities.28% -3. Brokered Deposits/Total Deposits: Bank Peer Group 0. BauerFinancial. it is an independent bank research firm.290 millions $0.77% 0.g.788 millions $0. Any unauthorized use of its content.55% F. is not a financial advisor.26% If an institution has to buy high-cost deposits in order to facilitate its growth.598 millions $0.25% 7. Loans to Deposits: Non-core Funding Dependence: Bank Peer Group 69. depending on the balance sheet of the institution. they are indicators of an institution's ability to meet current obligations. Brokered deposits can be an expensive way to fund growth. thus negatively impacting earnings. BauerFinancial is a registered trademark. although. As a general rule. Asset shrinkage could indicate a cutback in lending.04% 6. KS As of September 30.664 millions Bank Peer Group 0. logos.. Inc.49% 1.27% 69.95% 7. as reported to federal regulators. The ratios facilitate comparisons between institutions and time periods. GROWTH. the accuracy and completeness of the data cannot be guaranteed by BauerFinancial.61% 5.23% Bank and Credit Union data compiled from financial data for the period noted.BauerFinancial Inc.