IDOB Update and Concluding Comments Thomas Gronstal Superintendent of Banking

IDOB Update andIDOB Update andConcluding CommentsConcluding Comments

Thomas GronstalThomas GronstalSuperintendent of BankingSuperintendent of Banking

Post Examination SurveysPost Examination Surveys

Market InformationMarket Information

Banking StatisticsBanking Statistics

Wrap-UpWrap-Up

IDOB SURVEYIDOB SURVEY

Iowa Division of BankingIowa Division of Banking

Post Examination Financial Post Examination Financial Institution AssessmentInstitution Assessment

Comparison 2006Comparison 2006

The examiner’s requests for information prior to and during the examination were reasonable.

32 541Strongly

AgreeMostly Agree Agree Mostly

DisagreeStrongly Disagree

1.591.59

32 541Strongly



During the course of the examination, management was:

a) Informed of relevant issues.

32 541Strongly



1.501.50

During the course of the examination, management was:

b) Given opportunity to respond to issues.

32 541Strongly



1.511.51

During the exit meeting, the examination team clearly and effectively communicated their findings and concerns.

32 541Strongly



1.461.46

Quality of the Report of Examination:

a) The tone and content of the report were consistent with the exit meeting.

32 541Strongly



1.491.49


b) Findings and recommendations were clear and easy to find.

32 541Strongly



1.511.51


c) The recommendations were useful to your organization.

32 541Strongly



1.641.64

The examination team completed the examination in a timely manner.

32 541Strongly



1.661.66

The examination team caused minimal disruption to our day-to-day operations.

32 541Strongly



1.641.64

The examination team conducted themselves in a professional manner.

32 541Strongly



1.351.35

Your satisfaction with staff knowledge of:

a) Laws, regulations, and policies.

32 541Strongly



1.521.52


b) Operations.

32 541Strongly



1.551.55


c) Lending.

32 541Strongly



1.511.51


d) Your financial institution.

32 541Strongly



1.581.58

MarketInfo

04/27/10 1 Year Ago Change

3 Mo Bills 0.14 0.13 0.01

6 Mo Bills 0.23 0.30 -0.07

1 Yr Trsy 0.40 0.49 -0.09

2 Yr Trsy 1.02 0.90 0.12

3 Yr Trsy 1.60 1.31 0.29

5 Yr Trsy 2.51 1.87 0.64

10 Yr Trsy 3.76 2.95 0.81

30 Yr Trsy 4.61 3.84 0.77

DJI Avg 11,214.25 8025.0 3189.25

NASDAQ 2521.91 1679.41 842.50

S&P 500 1210.14 857.51 352.63

Gold 1155.45 906.50 248.95

Oil 83.39 50.14 33.25

Prime 3.25 3.25 0.00

3 Mo Libor 0.3278 1.053 -0.7252

Delinquent MortgagesDelinquent Mortgages4th Quarter 20084th Quarter 2008 4th Quarter 20094th Quarter 2009

StateState(Total Loans)(Total Loans)

% Total Loans% Total LoansWritten That AreWritten That Are

Sub-PrimeSub-Prime

% Total % Total LoansLoans

Seriously Seriously DelinquentDelinquent

StateState(Total Loans)(Total Loans)

% Total Loans% Total LoansWritten That AreWritten That Are

Sub-PrimeSub-Prime

% Total % Total LoansLoans

Seriously Seriously DelinquentDelinquent

IA (358)IA (358) 7.467.46 4.054.05 IA (344)IA (344) 6.806.80 5.395.39

IL (1,768)IL (1,768) 11.5311.53 6.636.63 IL (1,713)IL (1,713) 10.5010.50 7.587.58

MN (906)MN (906) 8.678.67 4.844.84 MN (885)MN (885) 6.826.82 5.055.05

NE (208)NE (208) 8.168.16 3.383.38 NE (209)NE (209) 7.127.12 3.433.43

ND (59)ND (59) 4.294.29 1.671.67 ND (59)ND (59) 6.006.00 2.322.32

SD (82)SD (82) 5.895.89 2.412.41 SD (80)SD (80) 6.596.59 3.723.72

WI (636)WI (636) 8.748.74 4.934.93 WI (597)WI (597) 7.977.97 6.936.93

CA (5,893)CA (5,893) 11.9911.99 8.288.28 CA (5,779)CA (5,779) 9.789.78 12.4912.49

FL (3,579)FL (3,579) 16.0016.00 13.3213.32 FL (3,434)FL (3,434) 14.6114.61 20.4320.43

NV (567)NV (567) 16.3016.30 11.2011.20 NV (544)NV (544) 12.9812.98 19.0419.04

U.S. (45,396)U.S. (45,396) 11.6811.68 N/AN/A U.S. (44,426)U.S. (44,426) 10.2910.29 N/AN/A

2009 Average Values2009 Average Values

Dollar ValuesLess than $4,000$4,000 - $5,000More than $5,000

Average Values Adjusted for Inflation, 2009 DollarsAverage Values Adjusted for Inflation, 2009 Dollars

Average Values All Grades1950-2009

Average Values All Grades1950-2009

Who Purchased FarmlandWho Purchased Farmland

STATE AND NATIONAL BANKS Net Loans, Total Deposits, & Total Assets

38,56538,862

36,61334,97232,583

27,31029,864

27,148 27,890 29,10928,212

46,26643,864

41,10838,098

35,820

39,988

36,395

40,10440,26237,907

34,300

45,969

48,262 50,57952,696

56,20758,449

47,38749,92249,808

44,58844,897

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

$50,000

$55,000

$60,000

$65,000

As of December 31

$ in

Milli

ons

Net Loans Total Deposits Total Assets

.

Net Charge-offs to Total Loans

0.18 0.160.26 0.27

0.18 0.16 0.13 0.120.20

0.43

0.76

1.11

0.89

0.630.56

0.41

0.62

1.32

2.57

0.610.67

0.95

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

2.2

2.4

2.6

2.8

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Iowa State Chartered Banks All U.S. Commercial Banks

Loan Loss Reserves to Total Loans

1.401.31 1.28 1.31 1.32 1.26 1.20 1.17 1.14

1.25

1.68

1.86 1.851.74

1.50

1.281.15

1.34

2.29

3.27

1.49

1.68

0.75

1.00

1.25

1.50

1.75

2.00

2.25

2.50

2.75

3.00

3.25

3.50

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009


Nonperforming Loans plus OREO as a Percentage of Total Assets

0.45 0.45 0.58 0.64 0.57 0.57 0.56 0.630.92

1.440.740.89 0.92

0.760.55 0.49 0.53

0.88

1.82 1.86

0.63

3.34

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009


14.616.1 17.0

20.3 19.116.0 15.3 15.2 17.0

27.0

38.5

0

5

10

15

20

25

30

35

40

45

Per

cent

of

Cap

ital

As of December 31

Adversely Classified Assets as a Percentage of Capital

State Banks Only

Tier One Leverage Ratio

9.359.23 9.30 9.32 9.39 9.49 9.51 9.47

9.31 9.25

7.79 7.70 7.79 7.83 7.85 7.82 7.91 7.867.63

7.40

8.55

9.36

7.0

7.5

8.0

8.5

9.0

9.5

10.0

10.5

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009


Loans as a Percentage of Assets

70.2%70.6%70.3%68.9%

66.2%

63.8%63.2%63.6%64.2%64.3%

67.4%

60.8% 61.1%59.3% 58.7% 58.3% 58.3%

59.5% 59.3% 59.3%

55.6% 54.9%

50%

55%

60%

65%

70%

75%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009


Commercial RE Loans as a Percentage of Total Assets

7.8% 7.9%

8.9%

7.9% 8.0%7.7% 7.8%

8.3%

13.6%

9.7%

11.9%

10.7%

13.0%12.6%

12.9% 12.7%

7.3% 7.5% 7.7% 7.9%8.2%7.9%

4%

6%

8%

10%

12%

14%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009


Real Estate Loans as a Percentage of Total Loans

54.3%55.9%

57.5%58.5% 59.3%

60.7% 60.7%

43.3% 43.9%

46.3%

49.8%51.3%

53.5%

55.5%57.4%

55.5% 56.2%

60.4%61.1%

60.4%

62.0%

58.8%

40%

50%

60%


2003

Core Deposits to Total Assets

74.6%

71.3%72.4% 71.8% 71.8%

70.6%68.7%

67.2% 66.6% 66.0% 66.7%

47.0% 46.4%48.7% 48.7% 48.6%

47.6% 47.1%44.7%

42.6%44.4%

49.8%

40%

45%

50%

55%

60%

65%

70%

75%

80%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009


Adversely Classified Loans to Total Loans

2.532.63 2.58

2.69 2.68 2.60

3.13

3.383.59

4.094.19

4.53 4.624.80

5.05 5.05 5.115.24

5.09 5.05 5.10 5.08

5.38 5.35

0.00

1.00

2.00

3.00

4.00

5.00

6.00

Perc

ent

Adversely Classified Assets to Total Capital(Total Sub Classified / ((Total Equity Capital - FASB) + ALLL - Intangible Assets)) * 100

17.23 17.78 17.05 17.83 17.7419.73

23.7825.32

27.01

31.89 32.35

36.0436.95

38.2239.89

40.64 41.1342.52

40.90

38.28 38.50 37.98

40.69

43.33

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

50.00

Perc

ent

Tier 1 Leverage Capital Ratio

9.52

9.47

9.539.50

9.43

9.55

9.639.65

9.63

9.31 9.31

9.06 9.08 9.099.12

9.08

9.12

9.06 9.089.10 9.09

9.19 9.19

9.25

8.70

8.80

8.90

9.00

9.10

9.20

9.30

9.40

9.50

9.60

9.70

Perc

enet

Total Capital Ratio(Total Capital / Adjusted Avg. Total Assets) *100

10.3410.28

10.3410.31

10.25

10.36

10.45 10.46

10.37

9.99 9.97

9.749.78 9.77

9.829.79

9.82

9.76 9.779.81 9.79

9.939.95

10.07

9.20

9.40

9.60

9.80

10.00

10.20

10.40

10.60

4/30/2008

5/31/2008

6/30/2008

7/31/2008

8/31/2008

9/30/2008

10/31/2008

11/30/2008

12/31/2008

1/31/2009

2/28/2009

3/31/2009

4/30/2009

5/31/2009

6/30/2009

7/31/2009

8/31/2009

9/30/2009

10/31/2009

11/30/2009

12/31/2009

1/31/2010

2/28/2010

3/31/2010

Perc

entTotal Capital Ratio

(Total Capital / Adjusted Avg. Total Assets) *100

10.3410.28

10.3410.31

10.25

10.36

10.45 10.46

10.37

9.99 9.97

9.749.78 9.77

9.829.79

9.82

9.76 9.779.81 9.79

9.939.95

10.07

9.20

9.40

9.60

9.80

10.00

10.20

10.40

10.60

Perc

ent

Loans to Deposits

89.71

90.50 90.49

91.2790.78

91.48 91.66

89.95

88.84

91.10

90.40

91.84

94.61

93.18

92.6093.03

92.6892.23

91.09 91.04

90.3089.91

89.44

87.40

82.00

84.00

86.00

88.00

90.00

92.00

94.00

96.00

Perc

ent

Past Due Loans to Total Loans

1.771.88

1.51 1.53 1.53

1.70

1.972.05

2.23

2.55 2.54

2.812.75 2.77

2.95 2.973.04

3.102.99

2.80 2.832.77

3.02

2.82

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Perc

ent

Another problem caused by deforestation.

Questions?Questions?

Thank you…Thank you…

Ernie GossErnie GossJohn HusseyJohn HusseySteve McCulloughSteve McCulloughNeil MilnerNeil Milner

Thank you…Thank you…

Vaughn NoringVaughn NoringKay AndersonKay AndersonRodney ReedRodney ReedChristy BillsChristy BillsJamie ChristoffersonJamie ChristoffersonMaureen PattersonMaureen Patterson

The Federal Reserve Bank of Chicago’sThe Federal Reserve Bank of Chicago’sIowa Office of Supervision & RegulationIowa Office of Supervision & Regulation

Cordially Invites YouCordially Invites Youto an Open House Receptionto an Open House Reception

Thursday, April 29, 2010Thursday, April 29, 20102:00 p.m. to 5:00 p.m.2:00 p.m. to 5:00 p.m.

(following the “Day with the Superintendent”)(following the “Day with the Superintendent”)

No No RSVPRSVP Necessary NecessaryQuestions? 800-642-6389Questions? 800-642-6389

The office is located south of the West Des Moines MarriottThe office is located south of the West Des Moines Marriotton Jordan Creek Parkway, west of the Perkins Restauranton Jordan Creek Parkway, west of the Perkins Restaurant

The presentations from today’s The presentations from today’s program will be available for program will be available for

download on the Iowa Division download on the Iowa Division of Banking’s Website at:of Banking’s Website at:

www.idob.state.ia.uswww.idob.state.ia.us

Documents

IDOB Update and Concluding Comments Thomas Gronstal Superintendent of Banking