2021 Strategic Planning Conference

Capital & Earnings

Bank Profile - Capital - Level - Overview

CAPITAL RATIOS - LEVEL

Fidelity Bank (West Des Moines, Iowa)

Tier One Leverage Ratio

Total Capital Ratio

2021Q2

2021Q2

Qu...

Qu...

Bank

State

All Banks

Bank

State

All Banks

16.07%

10.11%

15.47%

9.85%

14.82%

9.42%

10.00%

14.00% 10.00%

6.00%

6.00% 2.00%

2.00%

Tier One Capital Ratio

Common Equity Tier One Ratio

2021Q2

2021Q2

Qu...

Qu...

Bank

State

All Banks

Bank

State

All Banks

14.96%

14.92%

14.36%

14.36%

13.78%

13.78%

14.00%

10.00% 14.00%

6.00% 10.00%

Constant 6.50%

2.00% 6.00%

2.00%

Tier One Leverage Ratio = Tier One Capital / Average Total Assets Total Capital Ratio = Total Capital / Risk Weighted Assets Tier One Capital Ratio = Tier One Capital / Risk Weighted Assets Common Equity Tier One Ratio = Common Equity Tier One Capital / Risk Weighted Assets

Capital Ratios Date

2021Q2

Using risk-weighted assets as a denominator requires banks with riskier assets to have a higher amount of capital. Low risk assets (e.g. cash, interest-bearing bank balances, U.S. Treasury and Agency bonds, Municipal general obligation bonds) carry low risk weightings such as 0% or 20%. Higher risk assets (e.g. several loan categories and corporate bonds) carry higher risk weightings such as 100%. Banks can opt into the Community Bank Leverage Ratio framework to avoid the burden of reporting risk-weighted assets. The risk-weighted capital ratios will not populate for these banks. To be eligible for this framework, a bank must be less than $10 billion in assets, maintain a Tier One Leverage above 9%, and off-balance sheet exposures cannot exceed 25% of assets. The horizontal dotted lines in the charts reflect Prompt Corrective Action well capitalized thresholds. The consequences of falling below well capitalized are severe and include limitations on the use of brokered and high-rate deposits. Keep in mind the level of minimum capital plus the full conservation buffer is 50 basis points higher than well capitalized for the three risk-based capital ratios. Falling below the conservation buffer affects the ability to pay dividends and discretionary payments to executive officers.

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Capital & Earnings

Bank Profile - Ratios Glossary - Overview

CAPITAL - CALCULATIONS GLOSSARY

Fidelity Bank (West Des Moines, Iowa)

Tier One Leverage Ratio Total Capital Ratio Tier One Capital Ratio Common Equity Tier One Ratio Dividends to Net Income Retained Earnings to Average Total Equity Equity Capital Growth Rate

Tier One Capital / Average Total Assets (UBPRD486) Total Capital / Risk Weighted Assets (UBPRD488) Tier One Capital / Risk Weighted Assets (UBPRD487) Common Equity Tier One Capital / Risk Weighted Assets (UBPRR029) UBPR7402

UBPRE025 UBPRE635

Equity Growth Less Asset Growth

UBPRE636

EARNINGS - CALCULATIONS GLOSSARY Return on Average Assets (Adjusted Subchapter S)

Fidelity Bank (West Des Moines, Iowa)

Net income (adjusted for Subchapter S tax status) / Average Total Assets (UBPRE012)

Return on Equity

Net Income / Average Bank Equity (UBPRE630)

Net Income

UBPR4340

Net Interest Margin

One Quarter Annualized Net Interest Income / Average Earning Assets (UBPRE680)

Yield on Assets

One Quarter Annualized Interest Income / Average Earning Assets (UBPRE678)

Cost of Funds

One Quarter Annualized Interest Expense / Average Earning Assets (UBPRE679)

Loans to Total Assets

UBPRE024

Yield on Loans (Tax Equivalent)

One Quarter Annualized Interest and fees on loans plus the tax benefit on tax-exempt loan income / Average Total Loans (UBPRE686)

Yield on Securities (Tax Equivalent)

One Quarter Annualized Income on investment securities plus the estimated tax benefit on tax exempt Municipals / Average Total Securities (UBPRE694)

Noninterest Income/Average Assets

UBPRE004 • Deposit service charges (RIAD4080) • Mortgage banking = Net servicing fees and Loan and lease net gains/losses (RIADB492 + RIAD5416) •Investment Advisory/Insurance/Trust = Investment banking and advisory income, Insurance commisions and fee income, and Income from fiduciary activities (UBPRB490 + UBPRE080 + RIAD4070) • Other = Other noninterest income, Other net gains/losses, and securitization income (RIADB497 + UBPRE081 + UBPR7452).

Noninterest Income Amounts

Overhead to Average Assets Overhead Costs Less Noninterest Income/Average Assets Efficiency Ratio Personnel Expenses/Average Assets Occupancy Expenses/Average Assets Other Operating Expenses/Average Assets Provisions/Average Assets Realized Bond Gains/Losses/Average Assets

UBPRE005 UBPRE087

Total Overhead Expenses / Net Interest Income (tax equivalent) + Noninterest Income (UBPRE088) UBPR7400 UBPRE084 UBPRE085 UBPRE006 UBPRE008

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