Community First Bankshares Reports First Quarter Earnings

Apr 19, 2001, 01:00 ET from Community First Bankshares, Inc.

    FARGO, N.D., April 19 /PRNewswire/ --
     Community First Bankshares, Inc., (Nasdaq:   CFBX) today reported results
 for the first quarter of 2001.
 
     First Quarter 2001 Highlights
     -- Diluted earnings per share of 24 cents per share, compared to 37 cents
        the prior year.  As previously announced on March 22, the first quarter
        of 2001 includes a one-time restructuring charge of 12 cents per share
        and a one-time charge of 4 cents per share for the write-off of a loan
        that was in an acquired bank at the time of acquisition.  Excluding the
        one-time charge and the special loan loss provision, diluted earnings
        per share would have been 40 cents per share.
     -- Net income of $10.2 million, compared to $18.7 million in the first
        quarter of 2000.  The 2001 quarter includes a one-time restructuring
        charge of $5.1 million after-tax and a loan write-off of $1.5 million
        after-tax.
     -- Return on average equity (ROE) of 11.9 percent, compared to
        18.5 percent in the first quarter of 2000.  Excluding the one-time
        charge and the special loan loss provision, return on equity would have
        been 19.6 percent for the first quarter of 2001.
     -- Return on assets (ROA) of 0.69 percent, compared to 1.20 percent in the
        first quarter of 2000.  Excluding the one-time charge and the special
        loan loss provision, return on assets would have been 1.14 percent for
        the first quarter of 2001.
     -- Net interest income of $65.1 million, compared to $68.5 million in the
        first quarter of 2000.
     -- Efficiency ratio on a cash basis of 60.9 percent, compared to
        57.7 percent in the first quarter of 2000, and 60.9 percent in the
        fourth quarter of 2000.
     -- Nonperforming assets comprised .42 percent of total assets in the first
        quarter of 2001, compared to .52 percent the previous year.  On a
        dollar basis, nonperforming assets during the quarter declined
        23 percent, compared to the previous year.  Non-performing assets to
        period-end loans and OREO was .66 percent for the quarter, the lowest
        ratio since the second quarter of 1998.
 
                                 First Quarter
 
                                    2001 Reported    2001 Adjusted*    2000
     Net income (in millions)           $10.2             $16.8        $18.7
     Basic earnings per share             .25               .40          .37
     Diluted earnings per share           .24               .40          .37
     Diluted cash earnings per share      .29               .45          .41
 
     Return on assets                     .69%             1.14%        1.20%
     Return on common equity            11.92             19.58        18.53
     Cash efficiency ratio              60.85             60.85        57.72
     Net interest margin                 4.96              4.96         5.00
 
     *Excludes impact of one-time charge and special loan loss provision
 
     Community First Bankshares, Inc., (Nasdaq:   CFBX) today reported first
 quarter net income of $10,228,000, or 25 cents per share basic and 24 cents
 diluted, for the quarter ended March 31, 2001, compared to net income of
 $18,663,000, or 37 cents per share (basic and diluted), for the same period of
 2000.
     During the quarter, the Company recognized a one-time after-tax charge
 against earnings of $5.1 million, or 12 cents per share, to account for the
 financial impact of the restructuring initiatives announced in March.  The
 Company also wrote off its largest non-performing loan and recognized a
 special loan loss provision equal to the amount of the write-off of
 $1.5 million after-tax or 4 cents per share.  Excluding the one-time charge
 and the special loan loss provision, the Company's net income was $16,802,000,
 or 40 cents per share, (basic and diluted).
     On a cash basis, the Company reported earnings per share (diluted earnings
 per share excluding amortization of goodwill and other intangibles), of
 29 cents per share for the first quarter of 2001, compared to 41 cents
 reported in the 2000 quarter.  Return on average equity, exclusive of
 amortization of intangibles, the one-time charge and the special loan loss
 provision, was 14.4 percent in the first quarter of 2000, versus 20.4 percent
 in the same period of the prior year.  However, excluding the impact of the
 one-time charge and the special loan loss provision, cash earnings per share
 (diluted) would have been 45 cents, compared to 41 cents in the same period of
 the prior year. Return on average equity, exclusive of amortization of
 intangibles, the one-time charge and the special loan loss provision, would
 have been 22.0 percent, an increase over the 20.4 percent in the first quarter
 of the prior year.
     "On March 22, we announced a series of initiatives that have been
 developed to better align our resources with individual market opportunities,"
 commented Mark Anderson, president and chief executive officer.  "That
 announcement detailed a very comprehensive restructuring effort, continuing a
 range of initiatives implemented over the past year.
     "We have designated every location as either a Regional Financial Center
 or a Community Financial Center, based on its performance, demographic profile
 and market opportunity.  Regional Financial Centers are locations that have
 shown strong commercial banking potential and thus require a broader base of
 resources to pursue those opportunities.  Regional Financial Centers are
 typically aligned along a hub and spoke system, with one office directing and
 supporting smaller offices in close geographic proximity.  Community Financial
 Centers, which are less geographically concentrated and typically offer
 greater retail opportunities, will have stronger emphasis on retail banking,
 insurance and investment products.  This model is designed to stimulate
 increased cross-selling of products, and thus the insurance and investment
 sales forces are being integrated into the banking division.
     "As part of our restructuring, we have elected to sell or close
 21 offices," continued Anderson.  "We will also implement a centralized
 consumer loan processing system, headquartered in Fargo.  To accommodate the
 changes in staffing needs brought about by the restructuring, the Company made
 an early-out program available that has been accepted by 21 eligible managers.
 These actions resulted in the $5.1 million after tax charge."
 
     Net Interest Income
     Interest income in the first quarter of 2001 was $115,175,000, compared to
 $117,430,000 in the first quarter of 2000.  The impact of a seasonally modest
 increase in loans was offset by a generally lower level of interest rates.
 Interest expense for the quarter was $50,088,000, an increase of 2.4 percent
 from the level in the first quarter of 2000, but down 6.6 percent on a linked
 quarter basis.  Average deposits for the quarter increased 1.0 percent from
 the first quarter of 2000.  Net interest income was $65,087,000 for the first
 quarter of 2001, a decrease from $68,495,000 earned during the first quarter
 of 2000.  Compared to the fourth quarter of 2000, net interest income was
 relatively unchanged.  Net interest margin was 4.96 percent for the first
 quarter of 2001, a decrease from 5.00 percent during the initial quarter of
 2000, but up significantly from 4.86 percent recorded during fourth quarter
 2000.
     "During 2000, we focused efforts on contracting our balance sheet as a way
 to reduce the impact of rapidly shifting interest rates and to better allocate
 capital," stated Craig Weiss, chief financial officer.  "Among our initial
 efforts was the decision to exit one of our lending businesses that did not
 meet our return requirements.  We have been able to reduce our reliance on
 short-term wholesale funding to $215 million, a reduction of $400 million from
 the first quarter of 2000.  Combined with our efforts to improve loan and
 deposit pricing, our actions have had a very positive effect on our net
 interest margin.  The improvement in net interest margin resulting from the
 decrease in wholesale funding has been offset by interest costs associated
 with the stock repurchase plan.  The repurchase program had a negative impact
 of 22 basis points on our net interest margin, when compared with the first
 quarter of 2000 and a negative impact of 3 basis points on a linked quarter
 basis.
     "We were pleased with the strong quarter-to-quarter increase in our net
 interest margin," continued Weiss.  "While the efforts in our markets to
 improve our margin have had an impact, the most significant gains have been
 due to our balance sheet and capital management efforts.  Another contribution
 to the improvement in our net interest margin was an increase in loan fees of
 9.6 percent on a linked quarter basis.  This was a reversal of a softening
 trend we realized during 2000.
     "During first quarter, we realized the impact of an aggressive monetary
 policy, as the rate on federal funds was reduced 1.50 percent.  Periods of
 rapidly moving interest rates increase the challenge to maintain and improve
 net interest margin.  This is particularly true given growing concerns over
 the vitality of the economy and the possibility of additional interest rate
 reductions.  Despite a favorable balance sheet structure, additional declines
 in interest rates may make it more difficult to match declines in deposit
 rates with reductions in asset yields," said Weiss.
 
     Loan Activity
     Total loans as of March 31, 2001, were $3.75 billion, up 1.7 percent since
 March 31, 2000, and up 0.3 percent since December 31, 2000.
     "The reduction in our discounted lease receivable portfolio continues to
 have a significant impact on the growth of our total loan portfolio," said Ron
 Strand, vice chairman and chief operating officer.  "Exclusive of this
 amortization, the loan portfolio increased 5.8 percent between the first
 quarter of 2000 and the first quarter of 2001, and 1.2 percent over the
 December quarter, or 5.0 percent on an annualized basis.
     "Since the end of first quarter 2000, the discounted lease portfolio has
 declined more than $135 million, with a decrease of $32 million during the
 recently completed quarter.  Our expectation is that this portion of our loan
 portfolio will continue to decline at a relatively rapid pace and should see
 reductions of $10 million per month for the balance of 2001.
     "The recent interest rate reductions have resulted in some increased loan
 demand, particularly for residential real estate and construction lending,"
 continued Strand.  "However, we still see some softness in commercial lending.
 We continue to look for 5 to 6 percent growth in our core loan portfolio, but
 the amortization of the discounted lease portfolio will reduce the overall
 rate of growth."
 
     Loan Losses
     Principally due to the impact of the $2.4 million write-off in Arizona
 that was in an acquired bank at the time of acquisition, annualized net
 charge-offs were .57 percent of average loans for the first quarter of 2001.
 Excluding that charge, the annualized net charge-offs for the quarter would
 have been .31 percent of average loans, compared to .33 percent in the first
 quarter of 2000.  Nonperforming assets comprised .42 percent of total assets
 as of March 31, 2001, compared to .52 percent as of March 31, 2000, as
 nonperforming assets declined 23 percent over that period.  The allowance for
 loan losses was 1.40 percent of total loans and 231 percent of nonperforming
 loans as of the end of the recent quarter.
     "Consistently strong credit quality has always been a high priority,"
 emphasized Anderson, "and these measures attest to the success of our efforts.
 At $24.9 million, our nonperforming assets are at the lowest dollar level
 since the second quarter of 1998.  The ratio of nonperforming assets to
 period-end loans and OREO is .66 percent, the lowest ratio since the second
 quarter of 1998.  At the same time, our allowance for loan losses as a percent
 of nonperforming loans is 231 percent, the highest level since the third
 quarter of 1998.
     "We are committed to further improvements in asset quality.  Much of the
 progress we have made over the past three years is a reflection of the amount
 of time that is required to implement our credit processes and underwriting
 standards at acquired banks," continued Anderson.  "Our experience shows that
 it typically takes two to three years to realize materially-improved results.
 We expect additional progress in the asset quality of the banks we acquired
 during the late 1990s during the balance of 2001.  Additionally, our decision
 to redefine our approach to consumer credit is expected to have a positive
 impact once it is fully implemented."
 
     Noninterest Income
     Noninterest income was $19,292,000 in the first quarter of 2001, a gain of
 4.4 percent over the first quarter of 2000.  During that period, insurance
 commissions increased 26.6 percent, and investment sales commissions decreased
 45.1 percent. Overall, total revenues from insurance, investment and trust
 businesses declined 4.0 percent for the quarter, compared to the first quarter
 of 2000.
     "The continued success of our insurance operations reaffirms our
 commitment to our restructuring plan," said Strand.  "That plan will integrate
 the insurance and investment sales forces into the regional banking division
 to improve product penetration and cross-sales.  While security sales
 commissions were negatively affected by the downturn in the stock markets, we
 are confident that these services will be a significant source of revenue over
 the longer term.
     "We expect continued growth in noninterest income as the result of our
 restructuring initiatives," added Strand.  "We will continue to develop
 additional delivery options and add incremental services, and support the
 sales of those products with enhanced training for our sales force."
 
     Noninterest Expense
     For the first quarter, noninterest expense increased 16.4 percent,
 compared to the same period in 2000.  This was due primarily to the
 restructuring charge of $7,656,000 on a pre-tax basis.  Excluding that charge,
 noninterest expense increased 2.2 percent from the year-ago quarter and
 1.3 percent from the fourth quarter of 2000.  Salaries and employee benefits
 increased a modest 3.0 percent from the first quarter of 2000.
     "As a result of our restructuring initiatives, we expect modest increases
 in noninterest expense over the next few quarters," commented Weiss.  "Late in
 the year, as we implement our centralized consumer lending approach, we
 anticipate that these costs will increase slightly, as we run duplicate
 systems for a short period of time.  However, once fully operational, our
 consumer credit approach is expected to enable us to realize an improvement in
 the cost to deliver consumer loan products and an improvement in asset
 quality."
 
     Share Repurchase Program
     The Company purchased 618,400 shares during the first quarter of 2001 as
 part of the 5 million share common stock repurchase program authorized during
 August 2000.
     "We will continue to repurchase shares as long as we believe the
 repurchase represents an effective use of our shareholders' capital," stated
 Anderson.  "With 1.4 million shares left to purchase of the 5 million share
 authorization, we anticipate continuing share repurchase at a modest pace
 throughout the year."
     Community First Bankshares is hosting a conference call at 12:00 noon, CDT
 on April 19, at which time management will discuss the results of the first
 quarter.  Individual investors and the media are welcome to join the call in a
 listen-only mode by calling 800-633-8538 shortly before the scheduled time of
 the call.  Callers should ask to be connected to the Community First
 Bankshares conference call hosted by Mark Anderson.  A transcript of the call
 will be posted on the Company's web site.
     Community First Bankshares, a financial services company with $6 billion
 in assets, operates full-service banking offices in 155 communities in
 12 states -- Arizona, California, Colorado, Iowa, Minnesota, Nebraska, New
 Mexico, North Dakota, South Dakota, Utah, Wisconsin and Wyoming.  The company
 offers a diverse array of financial services, including investments,
 insurance, mortgage and trust, with a focus on small business lending.  The
 company is the number one or two market-dominant bank in a majority of the
 communities it serves.  Community First's stock is traded on The Nasdaq Stock
 Market(R) under the symbol CFBX.  The latest investor and other corporate
 information is available at its web site, http://www.CommunityFirst.com .
     This press release contains forward-looking statements under the Private
 Securities Litigation Reform Act of 1995 that are subject to certain risks and
 uncertainties that could cause actual results to differ materially from
 historical earnings and those presently anticipated or projected.  The company
 wishes to caution readers not to place undue reliance on any such
 forward-looking statements, which speak only as of the date made.  Factors
 that could cause actual results to differ from the results discussed in the
 forward-looking statements include, but are not limited to:  risks related to
 the company's acquisition strategy, including risks of adversely changing
 results of operations and factors affecting the company's ability to
 consummate further acquisitions; risk of loans and investments, including
 dependence on local economic conditions; competition for the company's
 customers from other providers of financial services; possible adverse effects
 of changes in interest rates; balance sheet and critical ratio risks related
 to the share repurchase program, and other risks detailed in the company's
 filings with the Securities and Exchange Commission, all of which are
 difficult to predict and many of which are beyond the control of the company.
 
 
     COMMUNITY FIRST BANKSHARES, INC.
     SELECTED FINANCIAL DATA
 
                                                        Three Months Ended
                                                             March 31,
     (In thousands, except per share amounts)         2001              2000
 
     Current Earnings:
       Net interest income                          $65,087           $68,495
       Non interest income                           19,292            18,485
       Provision for loan losses                      5,617             4,990
 
       Net income applicable to common equity        10,228            18,663
 
     Per Common and Common Equivalent Share Data:
       Basic earnings per share                       $0.25             $0.37
       Diluted earnings per share                     $0.24             $0.37
 
       Dividend per common share                      $0.16             $0.15
       Period end book value                          $8.43             $8.19
 
     Average common shares outstanding:
       Basic                                     41,590,689        50,312,866
       Diluted                                   41,997,381        50,613,345
 
     Key Performance Ratios:
       Return on average assets                        0.69%             1.20%
       Return on average common shareholders'
        equity                                        11.92%            18.53%
       Average common shareholders' equity to
        average assets                                 5.80%             6.49%
       Leverage ratio                                  6.04%             7.51%
       Net interest margin                             4.96%             5.00%
       Efficiency ratio                               63.88%            60.66%
 
     Earnings Per Share and Ratios Excluding
      Goodwill and Other Intangible Assets
      Amortization and Balances ("Cash")
       Diluted earnings per share                     $0.29             $0.41
       Return on average assets                        0.85%             1.35%
       Return on average common shareholders'
        equity                                        14.35%            20.36%
       Efficiency ratio                               60.85%            57.72%
 
     Average Balance Sheet Data:
       Assets                                     5,997,085         6,240,421
       Loans                                      3,738,045         3,673,378
       Available-for-sale securities              1,669,687         1,924,893
       Held-to-maturity securities                   73,523            74,542
       Deposits                                   4,929,054         4,878,309
       Common shareholders' equity                  348,051           405,001
 
     End of Period Data:
       Assets                                     5,967,917         6,248,153
       Loans                                      3,750,323         3,687,553
       Available-for-sale securities              1,616,761         1,913,298
       Held-to-maturity securities                   74,081            75,097
       Deposits                                   4,927,469         4,906,853
       Common shareholders' equity                  349,631           413,175
 
       Common shares outstanding                 41,469,791        50,426,470
 
     Credit Quality for Operations:
       Annualized net charge-offs to average
        loans                                          0.57%             0.33%
       Nonperforming assets to total assets            0.42%             0.52%
       Nonperforming assets to period end loans
        and OREO                                       0.66%             0.88%
       Allowance for loan losses to period
        end loans                                      1.40%             1.38%
       Allowance for loan losses to
        nonperforming loans                             231%              197%
 
 
     COMMUNITY FIRST BANKSHARES, INC.
     FINANCIAL DATA WORKSHEET
 
     (In thousands, except per share amounts)    Q1'01       Q4'00       Q3'00
 
     Earnings Per Share:
       Before Extraordinary Items/Cum Effect:
       Basic                                     $0.25       $0.40       $0.40
       Diluted                                   $0.24       $0.40       $0.40
       After Extraordinary Items/Cum Effect:
       Basic                                     $0.25       $0.40       $0.40
       Diluted                                   $0.24       $0.40       $0.40
     Common Dividend Declared Per Share          $0.16       $0.15       $0.15
     EOP Book Value                              $8.43       $8.25       $7.71
     EOP Shares Outstanding:
       Basic                                41,469,791  41,866,752  43,085,988
       Diluted                              41,876,483  42,216,652  43,497,063
     Average Shares Outstanding:
       Basic                                41,590,689  42,167,936  44,399,867
       Diluted                              41,997,381  42,517,836  44,810,942
     HIGH Common Share Price                    $20.44      $19.13      $18.00
     LOW Common Share Price                     $18.06      $14.94      $16.19
 
                INCOME STATEMENT
     Interest Income (FTE)                     117,222     121,093     123,176
     Interest Expense                           50,088      53,633      54,842
       Net Interest Income (FTE)                67,134      67,460      68,334
     Loan Loss Provision                         5,617       4,004       2,976
     Investment Securities Transactions            484           4         (87)
     Trading Account                                 0           0           0
     Foreign Exchange                                0           0           0
     Trust Revenue                               1,506       1,438       1,404
     Insurance Revenue                           3,050       2,583       3,030
     Security Sales Revenue                      1,076       1,121       1,402
     Service Charges on Deposits                 9,453       9,967       9,898
     Other Non-Recurring Revenues                    0           0           0
     Other Non-Interest Revenue                  3,723       3,477       3,513
     Material Non-Recurring Revenue                  0           0           0
       Total Non-Interest Revenues              19,292      18,590      19,160
     Salaries & Benefits                        28,007      27,161      27,889
     Occupancy & Equipment                       8,187       7,877       7,909
     Deposit Insurance Expense                     242         246         248
     Foreclosed Property Expense                   204         218         351
     Other Expenses                             18,257      19,170      19,034
     Material Non-Recurring Expenses             8,118           0           0
     Minority Interest                               0           0           0
       Total Non-Interest Expense               63,015      54,672      55,431
       Pre-Tax Income (FTE)                     17,794      27,374      29,087
     Tax Equivalent Adjustment                   2,047       2,112       2,221
       Reported Pre-Tax Income                  15,747      25,262      26,866
     Taxes                                       5,519       8,303       9,115
       Income before extraordinary items        10,228      16,959      17,751
     Cumulative effect of extraordinary item         0           0           0
       Net Income after extraordinary item      10,228      16,959      17,751
     MEMO:
     Net Tax Applicable to Non-Recurring Items  (2,558)          0           0
     Tax Applicable to Securities Transactions     194           2         (35)
     Common Dividends                            6,656       6,319       6,616
     Preferred Dividends -
       Non-Convertible                               0           0           0
       Convertible                                   0           0           0
     After Tax Interest on Convertible Debt          0           0           0
     EOP Employees (FTE) - As Reported           2,443       2,776       2,696
     EOP Domestic Offices                          155         155         156
 
             AVERAGE BALANCE SHEET
     Taxable Securities                      1,641,600   1,689,150   1,755,148
     Tax-Exempt Securities                     101,610     111,263     121,437
     Domestic Loans                          3,738,045   3,710,339   3,726,967
     Foreign Loans                                   0           0           0
     Other Earning Assets                        7,074      12,719       4,501
     Total Earning Assets                    5,488,329   5,523,471   5,608,053
       Total Assets                          5,997,085   6,058,793   6,175,304
     Savings/NOW Accounts                    1,636,618   1,652,469   1,635,355
     Money Market Deposits                     230,608     237,379     231,939
     Other Consumer Time                     1,444,192   1,545,527   1,588,316
     CD's $100,000 & over                      717,052     651,723     647,359
     Foreign Deposits                                0           0           0
     Short-Term Borrowings                     402,433     400,775     496,717
     Long-Term Borrowings                      123,522     117,490     103,380
     Total Interest-Bearing Liabilities      4,554,425   4,605,363   4,703,066
     Demand Deposits                           900,584     934,825     942,844
     Total Deposits                          4,929,054   5,021,923   5,045,813
     Trust Owned Preferred Security            120,000     120,000     120,000
     Non-Convertible Preferred Equity                0           0           0
     Convertible Preferred Equity                    0           0           0
     Common Equity                             348,051     322,507     335,839
     Total Preferred Equity                          0           0           0
 
              PARENT COMPANY DATA
     EOP Investment in Subsidiaries            513,589     538,437     496,785
     EOP Goodwill                                    0           0           0
 
                 ASSET QUALITY
     EOP Nonaccrual Loans                       22,500      23,426      23,828
     EOP Restructured Loans                        221         224         241
     EOP OREO                                    2,167       2,437       3,656
       Total Non-performing Assets              24,888      26,087      27,725
     Loans > 90 days still accruing              3,423       2,482       2,180
     EOP In-Substance foreclosure                    0           0           0
 
              NON-PERFORMING LOANS
     Construction & Land Development                 0           0           0
     Commercial Mortgages                        8,862      11,034      10,948
     Commercial                                  5,512       4,649       3,402
     Residential Mortgages                       6,058       5,498       6,184
     LDC                                             0           0           0
     Other                                       2,068       2,245       3,294
       Total                                    22,500      23,426      23,828
 
       NET CHARGE-OFFS (current quarter)
     Commercial Real Estate                      2,400           0           0
     Commercial                                  1,264       1,281         729
     Residential Mortgages                         219         459         413
     Consumer                                    1,437       1,773       1,224
     LDC                                             0           0           0
     Agriculture                                   (32)        306         182
     All Other                                       0           0           0
       Total                                     5,288       3,819       2,548
     Gross Charge-offs                           6,520       5,143       3,691
     Gross Recoveries                            1,232       1,324       1,143
 
                 LOAN PORTFOLIO
     Construction & Land Development           493,082     466,616     448,771
     Commercial Mortgages                      739,098     745,149     737,015
     Commercial                                850,303     872,824     880,816
     Real Estate Loans                               0           0           0
     Residential Mortgages                     597,916     577,749     573,125
     Home Equity Loans                         137,269     135,596     127,893
     Credit Cards Outstanding                    8,949       8,758      10,845
     Other Consumer                            680,744     677,306     685,748
     LDC                                             0           0           0
     Foreign                                         0           0           0
     Agriculture                               242,962     254,204     253,098
       Total Loans & Leases                  3,750,323   3,738,202   3,717,311
 
                    EOP DATA
     Loan Loss Reserve                          52,497      52,168      51,983
     Assets                                  5,967,917   6,089,729   6,092,935
     Total Deposits                          4,927,469   5,019,891   5,030,914
     Trust Owned Preferred Security            120,000     120,000     120,000
     Total Preferred Equity                          0           0           0
     Common Equity                             349,631     345,431     332,081
     Convertible Debt                                0           0           0
     Total Long-Term Debt                      120,999     125,971     101,890
     Deposit Intangibles                        29,898      36,118      36,893
     Goodwill                                   66,637      68,813      70,517
     Mortgage Servicing Intangibles                  0           0           0
     Other Intangibles                          10,102      10,040      10,116
       Total Intangibles                       106,637     114,971     117,526
 
             RISK-ADJUSTED CAPITAL
     EOP Risk-Adjusted Total Assets          4,340,115   4,408,524   4,406,364
     Tier I Capital                            357,130     358,255     367,634
     Tier I Ratio                                 8.23%       8.13%       8.34%
     Tier II Capital                           117,555     114,862      87,983
     Total Capital                             474,685     473,117     455,617
     Total Capital Ratio                         10.94%      10.73%      10.34%
     Leverage Ratio                               6.04%       5.94%       6.10%
     Equity to Assets Ratio                       5.86%       5.67%       5.45%
     Tangible Equity to Assets Ratio              4.07%       3.78%       3.52%
 
                EFFICIENCY RATIO
     Net Interest Income                        67,134      67,460      68,334
     Non-Interest Income                        19,292      18,590      19,160
     Less:  Non-Recurring Income                     0           0           0
     Less:  Other Non-Recurring Items             (484)         (4)         87
       Total Revenue                            85,942      86,046      87,581
 
     Non-interest Expense                       63,015      54,672      55,431
     Less:  Non-Recurring Non-Int Expenses      (8,118)          0           0
     Less:  Other Non-Recurring Expenses             0           0           0
       Total Expense                            54,897      54,672      55,431
 
     Efficiency Ratio                            63.88%      63.54%      63.29%
 
              CORE EARNINGS
     Diluted Earnings Per Share - Reported      $0.244      $0.399      $0.396
     Diluted Earnings Per Share - Core
      (Originally Rptd)                         $0.400      $0.399      $0.396
 
           PERFORMANCE RATIOS
     Return on Average Assets                     0.69%       1.11%       1.14%
     Return on Average Equity                    11.92%      20.92%      21.03%
     Net Interest Margin                          4.96%       4.86%       4.85%
 
 
     COMMUNITY FIRST BANKSHARES, INC.
     FINANCIAL DATA WORKSHEET
 
     (In thousands, except per share amounts)          Q2'00             Q1'00
 
     Earnings Per Share:
       Before Extraordinary Items/Cum Effect:
       Basic                                           $0.38             $0.37
       Diluted                                         $0.38             $0.37
       After Extraordinary Items/Cum Effect:
       Basic                                           $0.38             $0.37
       Diluted                                         $0.38             $0.37
     Common Dividend Declared Per Share                $0.15             $0.15
     EOP Book Value                                    $7.66             $8.19
     EOP Shares Outstanding:
       Basic                                      45,569,285        50,426,470
       Diluted                                    45,946,349        50,726,949
     Average Shares Outstanding:
       Basic                                      48,060,322        50,312,866
       Diluted                                    48,437,386        50,613,345
     HIGH Common Share Price                          $17.56            $16.00
     LOW Common Share Price                           $15.19            $12.41
 
                INCOME STATEMENT
     Interest Income (FTE)                          $122,160          $119,723
     Interest Expense                                 52,871            48,935
       Net Interest Income (FTE)                      69,289            70,788
     Loan Loss Provision                               3,811             4,990
     Investment Securities Transactions                  144                 4
     Trading Account                                       0                 0
     Foreign Exchange                                      0                 0
     Trust Revenue                                     1,472             1,497
     Insurance Revenue                                 2,528             2,409
     Security Sales Revenue                            2,321             1,961
     Service Charges on Deposits                      10,009             9,663
     Other Non-Recurring Revenues                          0                 0
     Other Non-Interest Revenue                        2,496             2,951
     Material Non-Recurring Revenue                        0                 0
       Total Non-Interest Revenues                    18,970            18,485
     Salaries & Benefits                              27,788            27,186
     Occupancy & Equipment                             8,005             8,150
     Deposit Insurance Expense                           271               274
     Foreclosed Property Expense                         404               157
     Other Expenses                                   18,601            18,380
     Material Non-Recurring Expenses                       0                 0
     Minority Interest                                     0                 0
       Total Non-Interest Expense                     55,069            54,147
       Pre-Tax Income (FTE)                           29,379            30,136
     Tax Equivalent Adjustment                         1,968             2,293
       Reported Pre-Tax Income                        27,411            27,843
     Taxes                                             9,150             9,180
       Income before extraordinary items              18,261            18,663
     Cumulative effect of extraordinary item               0                 0
       Net Income after extraordinary item            18,261            18,663
     MEMO:
     Net Tax Applicable to Non-Recurring Items             0                 0
     Tax Applicable to Securities Transactions            58                 2
     Common Dividends                                  7,097             7,569
     Preferred Dividends -
       Non-Convertible                                     0                 0
       Convertible                                         0                 0
     After Tax Interest on Convertible Debt                0                 0
     EOP Employees (FTE) - As Reported                 2,716             2,695
     EOP Domestic Offices                                156               156
 
             AVERAGE BALANCE SHEET
     Taxable Securities                            1,827,189         1,851,996
     Tax-Exempt Securities                           135,854           147,439
     Domestic Loans                                3,713,618         3,673,378
     Foreign Loans                                         0                 0
     Other Earning Assets                             16,440            15,922
     Total Earning Assets                          5,693,101         5,688,735
       Total Assets                                6,243,615         6,240,421
     Savings/NOW Accounts                          1,670,853         1,668,260
     Money Market Deposits                           229,667           293,916
     Other Consumer Time                           1,441,223         1,417,127
     CD's $100,000 & over                            645,604           590,579
     Foreign Deposits                                      0                 0
     Short-Term Borrowings                           685,189           694,109
     Long-Term Borrowings                             84,394            77,670
     Total Interest-Bearing Liabilities            4,756,930         4,741,661
     Demand Deposits                                 939,968           908,427
     Total Deposits                                4,927,315         4,878,309
     Trust Owned Preferred Security                  120,000           120,000
     Non-Convertible Preferred Equity                      0                 0
     Convertible Preferred Equity                          0                 0
     Common Equity                                   377,338           405,001
     Total Preferred Equity                                0                 0
 
              PARENT COMPANY DATA
     EOP Investment in Subsidiaries                  591,938           584,921
     EOP Goodwill                                          0                 0
 
                 ASSET QUALITY
     EOP Nonaccrual Loans                             26,473            25,547
     EOP Restructured Loans                              272               277
     EOP OREO                                          5,115             6,667
       Total Non-performing Assets                    31,860            32,491
     Loans > 90 days still accruing                    2,489             3,973
     EOP In-Substance foreclosure                          0                 0
 
              NON-PERFORMING LOANS
     Construction & Land Development                       0                 0
     Commercial Mortgages                             11,277             9,915
     Commercial                                        4,329             5,176
     Residential Mortgages                             7,489             7,720
     LDC                                                   0                 0
     Other                                             3,378             2,736
       Total                                          26,473            25,547
 
       NET CHARGE-OFFS (current quarter)
     Commercial Real Estate                                0                 0
     Commercial                                        1,590             1,479
     Residential Mortgages                               264               289
     Consumer                                          1,006             1,242
     LDC                                                   0                 0
     Agriculture                                         228                26
     All Other                                             0                 0
       Total                                           3,088             3,036
     Gross Charge-offs                                 4,378             3,905
     Gross Recoveries                                  1,290               869
 
                 LOAN PORTFOLIO
     Construction & Land Development                 427,924           408,596
     Commercial Mortgages                            760,793           711,504
     Commercial                                      926,400           995,463
     Real Estate Loans                                     0                 0
     Residential Mortgages                           549,395           532,213
     Home Equity Loans                               112,686           112,338
     Credit Cards Outstanding                         10,594            10,392
     Other Consumer                                  678,342           676,380
     LDC                                                   0                 0
     Foreign                                               0                 0
     Agriculture                                     263,363           240,667
       Total Loans & Leases                        3,729,497         3,687,553
 
                    EOP DATA
     Loan Loss Reserve                                51,555            50,832
     Assets                                        6,278,718         6,248,153
     Total Deposits                                4,981,154         4,906,853
     Trust Owned Preferred Security                  120,000           120,000
     Total Preferred Equity                                0                 0
     Common Equity                                   349,016           413,175
     Convertible Debt                                      0                 0
     Total Long-Term Debt                            102,812            73,353
     Deposit Intangibles                              37,668            38,445
     Goodwill                                         72,157            73,798
     Mortgage Servicing Intangibles                        0                 0
     Other Intangibles                                 9,615             9,246
       Total Intangibles                             119,440           121,489
 
             RISK-ADJUSTED CAPITAL
     EOP Risk-Adjusted Total Assets                4,467,695         4,466,880
     Tier I Capital                                  397,595           463,920
     Tier I Ratio                                       8.90%            10.39%
     Tier II Capital                                  87,556            98,832
     Total Capital                                   485,151           562,752
     Total Capital Ratio                               10.86%            12.60%
     Leverage Ratio                                     6.40%             7.51%
     Equity to Assets Ratio                             5.56%             6.61%
     Tangible Equity to Assets Ratio                    3.66%             4.67%
 
                EFFICIENCY RATIO
     Net Interest Income                              69,289            70,788
     Non-Interest Income                              18,970            18,485
     Less:  Non-Recurring Income                           0                 0
     Less:  Other Non-Recurring Items                   (144)               (4)
       Total Revenue                                  88,115            89,269
 
     Non-interest Expense                             55,069            54,147
     Less:  Non-Recurring Non-Int Expenses                 0                 0
     Less:  Other Non-Recurring Expenses                   0                 0
       Total Expense                                  55,069            54,147
 
     Efficiency Ratio                                  62.50%            60.66%
 
              CORE EARNINGS
     Diluted Earnings Per Share - Reported            $0.377            $0.369
     Diluted Earnings Per Share - Core
      (Originally Rptd)                               $0.377            $0.369
 
           PERFORMANCE RATIOS
     Return on Average Assets                           1.18%             1.20%
     Return on Average Equity                          19.46%            18.53%
     Net Interest Margin                                4.90%             5.00%
 
 
     COMMUNITY FIRST BANKSHARES, INC.
     CONSOLIDATED STATEMENTS OF INCOME
 
     (In thousands, except per share amounts)   Q1 01       Q4 00       Q3 00
     Interest income:
       Loans                                    87,521      89,857      90,276
       Investment securities                    27,556      28,917      30,557
       Interest-bearing deposits                    62          21          43
       Fed funds sold & resale agreements           36         186          79
         Total interest income                 115,175     118,981     120,955
     Interest expense:
       Deposits                                 42,331      45,467      45,072
       Short-term & other borrowings             5,564       6,142       7,965
       Long-term debt                            2,193       2,024       1,805
         Total interest expense                 50,088      53,633      54,842
         Net interest income                    65,087      65,348      66,113
     Provision for loan losses                   5,617       4,004       2,976
     Net interest income after provision
      for loan losses                           59,470      61,344      63,137
     Noninterest income:
       Service charges on deposit accounts       9,453       9,967       9,898
       Insurance commissions                     3,050       2,583       3,030
       Fees from fiduciary activities            1,506       1,438       1,404
       Security sales commissions                1,076       1,121       1,402
       Net gains on sales of available-for-sale
        securities                                 484           4         (87)
       Other                                     3,723       3,477       3,513
         Total noninterest income               19,292      18,590      19,160
     Noninterest expense:
       Salaries & employee benefits             28,007      27,161      27,889
       Net occupancy                             8,187       7,877       7,909
       FDIC insurance                              242         246         248
       Legal and accounting                        835       1,200         886
       Other professional service                1,314       1,264       1,028
       Restructuring charge                      7,656           0           0
       Data processing                             890         997       1,173
       Other real estate and repossessed
        personal property                          204         218         351
       Company-obligated mandatorily redeemable
        preferred securities of CFB
        Capital I & II                           2,561       2,561       2,561
       Amortization of intangibles               2,601       2,621       2,623
       Other                                    10,518      10,527      10,763
         Total noninterest expense              63,015      54,672      55,431
 
     Income before income taxes                 15,747      25,262      26,866
     Provision for income taxes                  5,519       8,303       9,115
     Net income applicable to common equity     10,228      16,959      17,751
     Earnings per common and common
      equivalent share:
     Basic net income                            $0.25       $0.40       $0.40
     Diluted net income                          $0.24       $0.40       $0.40
     Average common shares outstanding:
       Basic                                41,590,689  42,167,936  44,399,867
       Diluted                              41,997,381  42,517,836  44,810,942
 
 
     COMMUNITY FIRST BANKSHARES, INC.
     CONSOLIDATED STATEMENTS OF INCOME
 
     (In thousands, except per share amounts)        Q2 00             Q1 00
     Interest income:
       Loans                                         88,287            84,985
       Investment securities                         31,825            32,226
       Interest-bearing deposits                         52                68
       Fed funds sold & resale agreements                28               151
         Total interest income                      120,192           117,430
     Interest expense:
       Deposits                                      40,862            37,880
       Short-term & other borrowings                 10,508             9,688
       Long-term debt                                 1,501             1,367
         Total interest expense                      52,871            48,935
         Net interest income                         67,321            68,495
     Provision for loan losses                        3,811             4,990
     Net interest income after provision for
      loan losses                                    63,510            63,505
     Noninterest income:
       Service charges on deposit accounts           10,009             9,663
       Insurance commissions                          2,528             2,409
       Fees from fiduciary activities                 1,472             1,497
       Security sales commissions                     2,321             1,961
       Net gains on sales of available-for-sale
        securities                                      144                 4
       Other                                          2,496             2,951
         Total noninterest income                    18,970            18,485
     Noninterest expense:
       Salaries & employee benefits                  27,788            27,186
       Net occupancy                                  8,005             8,150
       FDIC insurance                                   271               274
       Legal and accounting                             987               801
       Other professional service                     1,086             1,037
       Restructuring charge                               0                 0
       Data processing                                1,239             1,136
       Other real estate and repossessed personal
        property                                        404               157
       Company-obligated mandatorily redeemable
        preferred securities of CFB
        Capital I & II                                2,562             2,561
       Amortization of intangibles                    2,614             2,623
       Other                                         10,113            10,222
         Total noninterest expense                   55,069            54,147
 
     Income before income taxes                      27,411            27,843
     Provision for income taxes                       9,150             9,180
     Net income applicable to common equity          18,261            18,663
     Earnings per common and common equivalent
      share:
     Basic net income                                 $0.38             $0.37
     Diluted net income                               $0.38             $0.37
     Average common shares outstanding:
       Basic                                     48,060,322        50,312,866
       Diluted                                   48,437,386        50,613,345
 
 
     COMMUNITY FIRST BANKSHARES, INC.
     CONSOLIDATED BALANCE SHEETS
 
     (In thousands, except per share amounts) 3/31/01     12/31/00    9/30/00
 
                    ASSETS
     Cash & due from banks                     222,669     256,136     214,754
     Fed funds sold and securities purchased
      under agreement to resell                  4,450           0       2,365
     Interest-bearing deposits                   1,430       1,110       1,243
     Available-for-sale securities           1,616,761   1,714,510   1,754,548
     Held-to-maturity securities                74,081      73,222      72,357
     Loans                                   3,750,323   3,738,202   3,717,311
       Less:  Allowance for loan losses        (52,497)    (52,168)    (51,983)
         Net loans                           3,697,826   3,686,034   3,665,328
 
     Bank premises & equipment - net           123,100     121,675     120,010
     Accrued interest receivable                47,697      52,494      57,084
     Intangibles                               106,637     114,971     117,526
     Other assets                               73,266      69,577      87,720
 
     Total assets                            5,967,917   6,089,729   6,092,935
 
     LIABILITIES & SHAREHOLDERS' EQUITY
 
     Deposits:
       Noninterest-Bearing                     461,564     500,834     492,444
       Interest-bearing:
         Savings & NOW accounts              2,304,056   2,349,606   2,311,854
         Time deposits over $100,000           748,514     672,968     645,014
         Other time deposits                 1,413,335   1,496,483   1,581,602
           Total deposits                    4,927,469   5,019,891   5,030,914
     Fed funds purchased and securities
      sold under agreement to repurchase       249,296     205,758     195,444
     Short-term borrowings                     125,582     203,952     244,142
     Long-term debt                            119,272     123,957      99,422
     Capital lease obligations                   1,727       2,014       2,468
     Accrued interest payable                   43,358      45,489      40,452
     Other liabilities                          31,582      23,237      28,012
           Total liabilities                 5,498,286   5,624,298   5,640,854
     Company-obligated mandatorily
      redeemable preferred securities
      of CFB Capital I & II                    120,000     120,000     120,000
 
     Shareholders' equity:
       Common stock                                510         510         510
       Capital surplus                         192,368     192,368     192,071
       Retained earnings                       315,061     315,091     304,906
       SFAS 115 Equity Adjustment                1,806      (9,486)    (33,060)
       Cost of common stock in treasury       (160,114)   (153,052)   (132,346)
           Total shareholders' equity          349,631     345,431     332,081
 
     Total liabilities and shareholders'
      equity                                 5,967,917   6,089,729   6,092,935
 
     Period-end common shares outstanding   41,469,791  41,866,752  43,085,988
 
     Book value per common share                 $8.43       $8.25       $7.71
 
 
     COMMUNITY FIRST BANKSHARES, INC.
     CONSOLIDATED BALANCE SHEETS
 
     (In thousands, except per share amounts)      6/30/00           3/31/00
 
                   ASSETS
     Cash & due from banks                          259,717           218,170
     Fed funds sold and securities purchased
      under agreement to resell                       1,550            11,585
     Interest-bearing deposits                        2,181             3,020
     Available-for-sale securities                1,875,523         1,913,298
     Held-to-maturity securities                     71,539            75,097
     Loans                                        3,729,497         3,687,553
       Less:  Allowance for loan losses             (51,555)          (50,832)
         Net loans                                3,677,942         3,636,721
 
     Bank premises & equipment - net                121,542           123,118
     Accrued interest receivable                     52,292            50,203
     Intangibles                                    119,440           121,489
     Other assets                                    96,992            95,452
 
     Total assets                                 6,278,718         6,248,153
 
     LIABILITIES & SHAREHOLDERS' EQUITY
 
     Deposits:
       Noninterest-Bearing                          683,508           623,150
       Interest-bearing:
         Savings & NOW accounts                   2,164,209         2,231,329
         Time deposits over $100,000                631,251           630,200
         Other time deposits                      1,502,186         1,422,174
           Total deposits                         4,981,154         4,906,853
     Fed funds purchased and securities
       sold under agreement to repurchase           219,469           217,696
     Short-term borrowings                          453,266           458,735
     Long-term debt                                  99,895            69,964
     Capital lease obligations                        2,917             3,389
     Accrued interest payable                        33,471            31,808
     Other liabilities                               19,530            26,533
           Total liabilities                      5,809,702         5,714,978
     Company-obligated mandatorily redeemable
      preferred securities of CFB Capital I & II    120,000           120,000
 
     Shareholders' equity:
       Common stock                                     510               510
       Capital surplus                              192,071           192,071
       Retained earnings                            293,879           283,375
       SFAS 115 Equity Adjustment                   (47,841)          (52,072)
       Cost of common stock in treasury             (89,603)          (10,709)
           Total shareholders' equity               349,016           413,175
 
     Total liabilities and shareholders' equity   6,278,718         6,248,153
 
     Period-end common shares outstanding        45,569,285        50,426,470
 
     Book value per common share                      $7.66             $8.19
 
 
     COMMUNITY FIRST BANKSHARES, INC.
     CONSOLIDATED STATEMENTS OF INCOME
 
                                              For the Three Months Ended
                                                      March 31,           %
     (In thousands, except per share amounts)     2001         2000    Change
     (Dollars in thousands, except per share data)
     Interest income:
       Loans                                     $87,521      $84,985     3%
       Investment securities                      27,556       32,226   -14%
       Interest-bearing deposits                      62           68    -9%
       Federal funds sold and resale agreements       36          151   -76%
     Total interest income                       115,175      117,430    -2%
     Interest expense:
       Deposits                                   42,331       37,880    12%
       Short-term and other borrowings             5,564        9,688   -43%
       Long-term debt                              2,193        1,367    60%
     Total interest expense                       50,088       48,935     2%
     Net interest income                          65,087       68,495    -5%
     Provision for loan losses                     5,617        4,990    13%
     Net interest income after provision for
      loan losses                                 59,470       63,505    -6%
     Noninterest income:
       Service charges on deposit accounts         9,453        9,663    -2%
       Insurance commissions                       3,050        2,409    27%
       Fees from fiduciary activities              1,506        1,497     1%
       Security sales commissions                  1,076        1,961   -45%
       Net gains on sales of securities              484            4    nm
       Other                                       3,723        2,951    26%
     Total noninterest income                     19,292       18,485     4%
     Noninterest expense:
       Salaries and employee benefits             28,007       27,186     3%
       Net occupancy                               8,187        8,150     0%
       FDIC insurance                                242          274   -12%
       Legal and accounting                          835          801     4%
       Other professional service                  1,314        1,037    27%
       Restructuring charge                        7,656            0    nm
       Data processing                               890        1,136   -22%
       Other real estate and repossessed
        personal property                            204          157    30%
       Company-obligated mandatorily redeemable
        preferred securities of CFB
        Capital I & II                             2,561        2,561     0%
       Amortization of intangibles                 2,601        2,623    -1%
       Other                                      10,518       10,222     3%
     Total noninterest expense                    63,015       54,147    16%
     Income from continuing operations before
      income
     Income before income taxes                   15,747       27,843   -43%
     Provision for income taxes                    5,519        9,180   -40%
     Net income applicable to common equity      $10,228      $18,663   -45%
 
     Earnings per common and common equivalent
      share:
     Basic net income                              $0.25        $0.37   -32%
 
     Diluted net income                            $0.24        $0.37   -35%
 
     Average common and common equivalent
      shares outstanding:
       Basic                                  41,590,689   50,312,866   -17%
       Diluted                                41,997,381   50,613,345   -17%
 
 
     COMMUNITY FIRST BANKSHARES, INC.
     CONSOLIDATED BALANCE SHEETS
 
                                              March 31,   December 31,    %
     (In thousands, except per share amounts)   2001         2000       Change
 
     Assets:
     Cash and due from banks                  $222,669      $256,136     -13%
     Federal funds sold and securities
      purchased under agreements to resell       4,450             0       0%
     Interest-bearing deposits                   1,430         1,110      29%
     Available-for-sale securities           1,616,761     1,714,510      -6%
     Held-to-maturity securities                74,081        73,222       1%
     Loans                                   3,750,323     3,738,202       0%
       Less:  Allowance for loan losses        (52,497)      (52,168)      1%
     Net loans                               3,697,826     3,686,034       0%
     Bank premises and equipment, net          123,100       121,675       1%
     Accrued interest receivable                47,697        52,494      -9%
     Intangible assets                         106,637       114,971      -7%
     Other assets                               73,266        69,577       5%
     Total assets                            5,967,917     6,089,729      -2%
     Liabilities and shareholders' equity
     Deposits:
       Noninterest-bearing                     461,564       500,834      -8%
       Interest-bearing:
       Savings and NOW accounts              2,304,056     2,349,606      -2%
       Time accounts over $100,000             748,514       672,968      11%
       Other time accounts                   1,413,335     1,496,483      -6%
     Total deposits                          4,927,469     5,019,891      -2%
     Federal funds purchased and securities
      sold under agreements to repurchase      249,296       205,758      21%
     Other short-term borrowings               125,582       203,952     -38%
     Long-term debt                            119,272       123,957      -4%
     Accrued interest payable                   43,358        45,489      -5%
     Other liabilities                          33,309        25,251      32%
     Total liabilities                       5,498,286     5,624,298      -2%
 
     Company-obligated mandatorily
      redeemable preferred securities of
      CFB Capital I and II                     120,000       120,000       0%
     Shareholders' equity:
       Common stock, par value $.01 per share:
         Authorized Shares - 80,000,000
         Issued Shares - 51,021,896                510           510       0%
 
       Capital surplus                         192,368       192,368       0%
 
       Retained earnings                       315,061       315,091       0%
       Unrealized gain on available-for-sale
        securities, net of tax                   1,806        (9,486)   -119%
       Less cost of common stock in treasury -
        March 31, 2001 - 9,552,105 shares
        December 31, 2000 - 9,155,144 shares  (160,114)     (153,052)      5%
     Total shareholders' equity                349,631       345,431       1%
     Total liabilities and shareholders'
      equity                                $5,967,917    $6,089,729      -2%
 
     Period-end common shares outstanding   41,469,791    41,866,752      -1%
 
     Book value per common share                 $8.43         $8.25       2%
 
 

SOURCE Community First Bankshares, Inc.
    FARGO, N.D., April 19 /PRNewswire/ --
     Community First Bankshares, Inc., (Nasdaq:   CFBX) today reported results
 for the first quarter of 2001.
 
     First Quarter 2001 Highlights
     -- Diluted earnings per share of 24 cents per share, compared to 37 cents
        the prior year.  As previously announced on March 22, the first quarter
        of 2001 includes a one-time restructuring charge of 12 cents per share
        and a one-time charge of 4 cents per share for the write-off of a loan
        that was in an acquired bank at the time of acquisition.  Excluding the
        one-time charge and the special loan loss provision, diluted earnings
        per share would have been 40 cents per share.
     -- Net income of $10.2 million, compared to $18.7 million in the first
        quarter of 2000.  The 2001 quarter includes a one-time restructuring
        charge of $5.1 million after-tax and a loan write-off of $1.5 million
        after-tax.
     -- Return on average equity (ROE) of 11.9 percent, compared to
        18.5 percent in the first quarter of 2000.  Excluding the one-time
        charge and the special loan loss provision, return on equity would have
        been 19.6 percent for the first quarter of 2001.
     -- Return on assets (ROA) of 0.69 percent, compared to 1.20 percent in the
        first quarter of 2000.  Excluding the one-time charge and the special
        loan loss provision, return on assets would have been 1.14 percent for
        the first quarter of 2001.
     -- Net interest income of $65.1 million, compared to $68.5 million in the
        first quarter of 2000.
     -- Efficiency ratio on a cash basis of 60.9 percent, compared to
        57.7 percent in the first quarter of 2000, and 60.9 percent in the
        fourth quarter of 2000.
     -- Nonperforming assets comprised .42 percent of total assets in the first
        quarter of 2001, compared to .52 percent the previous year.  On a
        dollar basis, nonperforming assets during the quarter declined
        23 percent, compared to the previous year.  Non-performing assets to
        period-end loans and OREO was .66 percent for the quarter, the lowest
        ratio since the second quarter of 1998.
 
                                 First Quarter
 
                                    2001 Reported    2001 Adjusted*    2000
     Net income (in millions)           $10.2             $16.8        $18.7
     Basic earnings per share             .25               .40          .37
     Diluted earnings per share           .24               .40          .37
     Diluted cash earnings per share      .29               .45          .41
 
     Return on assets                     .69%             1.14%        1.20%
     Return on common equity            11.92             19.58        18.53
     Cash efficiency ratio              60.85             60.85        57.72
     Net interest margin                 4.96              4.96         5.00
 
     *Excludes impact of one-time charge and special loan loss provision
 
     Community First Bankshares, Inc., (Nasdaq:   CFBX) today reported first
 quarter net income of $10,228,000, or 25 cents per share basic and 24 cents
 diluted, for the quarter ended March 31, 2001, compared to net income of
 $18,663,000, or 37 cents per share (basic and diluted), for the same period of
 2000.
     During the quarter, the Company recognized a one-time after-tax charge
 against earnings of $5.1 million, or 12 cents per share, to account for the
 financial impact of the restructuring initiatives announced in March.  The
 Company also wrote off its largest non-performing loan and recognized a
 special loan loss provision equal to the amount of the write-off of
 $1.5 million after-tax or 4 cents per share.  Excluding the one-time charge
 and the special loan loss provision, the Company's net income was $16,802,000,
 or 40 cents per share, (basic and diluted).
     On a cash basis, the Company reported earnings per share (diluted earnings
 per share excluding amortization of goodwill and other intangibles), of
 29 cents per share for the first quarter of 2001, compared to 41 cents
 reported in the 2000 quarter.  Return on average equity, exclusive of
 amortization of intangibles, the one-time charge and the special loan loss
 provision, was 14.4 percent in the first quarter of 2000, versus 20.4 percent
 in the same period of the prior year.  However, excluding the impact of the
 one-time charge and the special loan loss provision, cash earnings per share
 (diluted) would have been 45 cents, compared to 41 cents in the same period of
 the prior year. Return on average equity, exclusive of amortization of
 intangibles, the one-time charge and the special loan loss provision, would
 have been 22.0 percent, an increase over the 20.4 percent in the first quarter
 of the prior year.
     "On March 22, we announced a series of initiatives that have been
 developed to better align our resources with individual market opportunities,"
 commented Mark Anderson, president and chief executive officer.  "That
 announcement detailed a very comprehensive restructuring effort, continuing a
 range of initiatives implemented over the past year.
     "We have designated every location as either a Regional Financial Center
 or a Community Financial Center, based on its performance, demographic profile
 and market opportunity.  Regional Financial Centers are locations that have
 shown strong commercial banking potential and thus require a broader base of
 resources to pursue those opportunities.  Regional Financial Centers are
 typically aligned along a hub and spoke system, with one office directing and
 supporting smaller offices in close geographic proximity.  Community Financial
 Centers, which are less geographically concentrated and typically offer
 greater retail opportunities, will have stronger emphasis on retail banking,
 insurance and investment products.  This model is designed to stimulate
 increased cross-selling of products, and thus the insurance and investment
 sales forces are being integrated into the banking division.
     "As part of our restructuring, we have elected to sell or close
 21 offices," continued Anderson.  "We will also implement a centralized
 consumer loan processing system, headquartered in Fargo.  To accommodate the
 changes in staffing needs brought about by the restructuring, the Company made
 an early-out program available that has been accepted by 21 eligible managers.
 These actions resulted in the $5.1 million after tax charge."
 
     Net Interest Income
     Interest income in the first quarter of 2001 was $115,175,000, compared to
 $117,430,000 in the first quarter of 2000.  The impact of a seasonally modest
 increase in loans was offset by a generally lower level of interest rates.
 Interest expense for the quarter was $50,088,000, an increase of 2.4 percent
 from the level in the first quarter of 2000, but down 6.6 percent on a linked
 quarter basis.  Average deposits for the quarter increased 1.0 percent from
 the first quarter of 2000.  Net interest income was $65,087,000 for the first
 quarter of 2001, a decrease from $68,495,000 earned during the first quarter
 of 2000.  Compared to the fourth quarter of 2000, net interest income was
 relatively unchanged.  Net interest margin was 4.96 percent for the first
 quarter of 2001, a decrease from 5.00 percent during the initial quarter of
 2000, but up significantly from 4.86 percent recorded during fourth quarter
 2000.
     "During 2000, we focused efforts on contracting our balance sheet as a way
 to reduce the impact of rapidly shifting interest rates and to better allocate
 capital," stated Craig Weiss, chief financial officer.  "Among our initial
 efforts was the decision to exit one of our lending businesses that did not
 meet our return requirements.  We have been able to reduce our reliance on
 short-term wholesale funding to $215 million, a reduction of $400 million from
 the first quarter of 2000.  Combined with our efforts to improve loan and
 deposit pricing, our actions have had a very positive effect on our net
 interest margin.  The improvement in net interest margin resulting from the
 decrease in wholesale funding has been offset by interest costs associated
 with the stock repurchase plan.  The repurchase program had a negative impact
 of 22 basis points on our net interest margin, when compared with the first
 quarter of 2000 and a negative impact of 3 basis points on a linked quarter
 basis.
     "We were pleased with the strong quarter-to-quarter increase in our net
 interest margin," continued Weiss.  "While the efforts in our markets to
 improve our margin have had an impact, the most significant gains have been
 due to our balance sheet and capital management efforts.  Another contribution
 to the improvement in our net interest margin was an increase in loan fees of
 9.6 percent on a linked quarter basis.  This was a reversal of a softening
 trend we realized during 2000.
     "During first quarter, we realized the impact of an aggressive monetary
 policy, as the rate on federal funds was reduced 1.50 percent.  Periods of
 rapidly moving interest rates increase the challenge to maintain and improve
 net interest margin.  This is particularly true given growing concerns over
 the vitality of the economy and the possibility of additional interest rate
 reductions.  Despite a favorable balance sheet structure, additional declines
 in interest rates may make it more difficult to match declines in deposit
 rates with reductions in asset yields," said Weiss.
 
     Loan Activity
     Total loans as of March 31, 2001, were $3.75 billion, up 1.7 percent since
 March 31, 2000, and up 0.3 percent since December 31, 2000.
     "The reduction in our discounted lease receivable portfolio continues to
 have a significant impact on the growth of our total loan portfolio," said Ron
 Strand, vice chairman and chief operating officer.  "Exclusive of this
 amortization, the loan portfolio increased 5.8 percent between the first
 quarter of 2000 and the first quarter of 2001, and 1.2 percent over the
 December quarter, or 5.0 percent on an annualized basis.
     "Since the end of first quarter 2000, the discounted lease portfolio has
 declined more than $135 million, with a decrease of $32 million during the
 recently completed quarter.  Our expectation is that this portion of our loan
 portfolio will continue to decline at a relatively rapid pace and should see
 reductions of $10 million per month for the balance of 2001.
     "The recent interest rate reductions have resulted in some increased loan
 demand, particularly for residential real estate and construction lending,"
 continued Strand.  "However, we still see some softness in commercial lending.
 We continue to look for 5 to 6 percent growth in our core loan portfolio, but
 the amortization of the discounted lease portfolio will reduce the overall
 rate of growth."
 
     Loan Losses
     Principally due to the impact of the $2.4 million write-off in Arizona
 that was in an acquired bank at the time of acquisition, annualized net
 charge-offs were .57 percent of average loans for the first quarter of 2001.
 Excluding that charge, the annualized net charge-offs for the quarter would
 have been .31 percent of average loans, compared to .33 percent in the first
 quarter of 2000.  Nonperforming assets comprised .42 percent of total assets
 as of March 31, 2001, compared to .52 percent as of March 31, 2000, as
 nonperforming assets declined 23 percent over that period.  The allowance for
 loan losses was 1.40 percent of total loans and 231 percent of nonperforming
 loans as of the end of the recent quarter.
     "Consistently strong credit quality has always been a high priority,"
 emphasized Anderson, "and these measures attest to the success of our efforts.
 At $24.9 million, our nonperforming assets are at the lowest dollar level
 since the second quarter of 1998.  The ratio of nonperforming assets to
 period-end loans and OREO is .66 percent, the lowest ratio since the second
 quarter of 1998.  At the same time, our allowance for loan losses as a percent
 of nonperforming loans is 231 percent, the highest level since the third
 quarter of 1998.
     "We are committed to further improvements in asset quality.  Much of the
 progress we have made over the past three years is a reflection of the amount
 of time that is required to implement our credit processes and underwriting
 standards at acquired banks," continued Anderson.  "Our experience shows that
 it typically takes two to three years to realize materially-improved results.
 We expect additional progress in the asset quality of the banks we acquired
 during the late 1990s during the balance of 2001.  Additionally, our decision
 to redefine our approach to consumer credit is expected to have a positive
 impact once it is fully implemented."
 
     Noninterest Income
     Noninterest income was $19,292,000 in the first quarter of 2001, a gain of
 4.4 percent over the first quarter of 2000.  During that period, insurance
 commissions increased 26.6 percent, and investment sales commissions decreased
 45.1 percent. Overall, total revenues from insurance, investment and trust
 businesses declined 4.0 percent for the quarter, compared to the first quarter
 of 2000.
     "The continued success of our insurance operations reaffirms our
 commitment to our restructuring plan," said Strand.  "That plan will integrate
 the insurance and investment sales forces into the regional banking division
 to improve product penetration and cross-sales.  While security sales
 commissions were negatively affected by the downturn in the stock markets, we
 are confident that these services will be a significant source of revenue over
 the longer term.
     "We expect continued growth in noninterest income as the result of our
 restructuring initiatives," added Strand.  "We will continue to develop
 additional delivery options and add incremental services, and support the
 sales of those products with enhanced training for our sales force."
 
     Noninterest Expense
     For the first quarter, noninterest expense increased 16.4 percent,
 compared to the same period in 2000.  This was due primarily to the
 restructuring charge of $7,656,000 on a pre-tax basis.  Excluding that charge,
 noninterest expense increased 2.2 percent from the year-ago quarter and
 1.3 percent from the fourth quarter of 2000.  Salaries and employee benefits
 increased a modest 3.0 percent from the first quarter of 2000.
     "As a result of our restructuring initiatives, we expect modest increases
 in noninterest expense over the next few quarters," commented Weiss.  "Late in
 the year, as we implement our centralized consumer lending approach, we
 anticipate that these costs will increase slightly, as we run duplicate
 systems for a short period of time.  However, once fully operational, our
 consumer credit approach is expected to enable us to realize an improvement in
 the cost to deliver consumer loan products and an improvement in asset
 quality."
 
     Share Repurchase Program
     The Company purchased 618,400 shares during the first quarter of 2001 as
 part of the 5 million share common stock repurchase program authorized during
 August 2000.
     "We will continue to repurchase shares as long as we believe the
 repurchase represents an effective use of our shareholders' capital," stated
 Anderson.  "With 1.4 million shares left to purchase of the 5 million share
 authorization, we anticipate continuing share repurchase at a modest pace
 throughout the year."
     Community First Bankshares is hosting a conference call at 12:00 noon, CDT
 on April 19, at which time management will discuss the results of the first
 quarter.  Individual investors and the media are welcome to join the call in a
 listen-only mode by calling 800-633-8538 shortly before the scheduled time of
 the call.  Callers should ask to be connected to the Community First
 Bankshares conference call hosted by Mark Anderson.  A transcript of the call
 will be posted on the Company's web site.
     Community First Bankshares, a financial services company with $6 billion
 in assets, operates full-service banking offices in 155 communities in
 12 states -- Arizona, California, Colorado, Iowa, Minnesota, Nebraska, New
 Mexico, North Dakota, South Dakota, Utah, Wisconsin and Wyoming.  The company
 offers a diverse array of financial services, including investments,
 insurance, mortgage and trust, with a focus on small business lending.  The
 company is the number one or two market-dominant bank in a majority of the
 communities it serves.  Community First's stock is traded on The Nasdaq Stock
 Market(R) under the symbol CFBX.  The latest investor and other corporate
 information is available at its web site, http://www.CommunityFirst.com .
     This press release contains forward-looking statements under the Private
 Securities Litigation Reform Act of 1995 that are subject to certain risks and
 uncertainties that could cause actual results to differ materially from
 historical earnings and those presently anticipated or projected.  The company
 wishes to caution readers not to place undue reliance on any such
 forward-looking statements, which speak only as of the date made.  Factors
 that could cause actual results to differ from the results discussed in the
 forward-looking statements include, but are not limited to:  risks related to
 the company's acquisition strategy, including risks of adversely changing
 results of operations and factors affecting the company's ability to
 consummate further acquisitions; risk of loans and investments, including
 dependence on local economic conditions; competition for the company's
 customers from other providers of financial services; possible adverse effects
 of changes in interest rates; balance sheet and critical ratio risks related
 to the share repurchase program, and other risks detailed in the company's
 filings with the Securities and Exchange Commission, all of which are
 difficult to predict and many of which are beyond the control of the company.
 
 
     COMMUNITY FIRST BANKSHARES, INC.
     SELECTED FINANCIAL DATA
 
                                                        Three Months Ended
                                                             March 31,
     (In thousands, except per share amounts)         2001              2000
 
     Current Earnings:
       Net interest income                          $65,087           $68,495
       Non interest income                           19,292            18,485
       Provision for loan losses                      5,617             4,990
 
       Net income applicable to common equity        10,228            18,663
 
     Per Common and Common Equivalent Share Data:
       Basic earnings per share                       $0.25             $0.37
       Diluted earnings per share                     $0.24             $0.37
 
       Dividend per common share                      $0.16             $0.15
       Period end book value                          $8.43             $8.19
 
     Average common shares outstanding:
       Basic                                     41,590,689        50,312,866
       Diluted                                   41,997,381        50,613,345
 
     Key Performance Ratios:
       Return on average assets                        0.69%             1.20%
       Return on average common shareholders'
        equity                                        11.92%            18.53%
       Average common shareholders' equity to
        average assets                                 5.80%             6.49%
       Leverage ratio                                  6.04%             7.51%
       Net interest margin                             4.96%             5.00%
       Efficiency ratio                               63.88%            60.66%
 
     Earnings Per Share and Ratios Excluding
      Goodwill and Other Intangible Assets
      Amortization and Balances ("Cash")
       Diluted earnings per share                     $0.29             $0.41
       Return on average assets                        0.85%             1.35%
       Return on average common shareholders'
        equity                                        14.35%            20.36%
       Efficiency ratio                               60.85%            57.72%
 
     Average Balance Sheet Data:
       Assets                                     5,997,085         6,240,421
       Loans                                      3,738,045         3,673,378
       Available-for-sale securities              1,669,687         1,924,893
       Held-to-maturity securities                   73,523            74,542
       Deposits                                   4,929,054         4,878,309
       Common shareholders' equity                  348,051           405,001
 
     End of Period Data:
       Assets                                     5,967,917         6,248,153
       Loans                                      3,750,323         3,687,553
       Available-for-sale securities              1,616,761         1,913,298
       Held-to-maturity securities                   74,081            75,097
       Deposits                                   4,927,469         4,906,853
       Common shareholders' equity                  349,631           413,175
 
       Common shares outstanding                 41,469,791        50,426,470
 
     Credit Quality for Operations:
       Annualized net charge-offs to average
        loans                                          0.57%             0.33%
       Nonperforming assets to total assets            0.42%             0.52%
       Nonperforming assets to period end loans
        and OREO                                       0.66%             0.88%
       Allowance for loan losses to period
        end loans                                      1.40%             1.38%
       Allowance for loan losses to
        nonperforming loans                             231%              197%
 
 
     COMMUNITY FIRST BANKSHARES, INC.
     FINANCIAL DATA WORKSHEET
 
     (In thousands, except per share amounts)    Q1'01       Q4'00       Q3'00
 
     Earnings Per Share:
       Before Extraordinary Items/Cum Effect:
       Basic                                     $0.25       $0.40       $0.40
       Diluted                                   $0.24       $0.40       $0.40
       After Extraordinary Items/Cum Effect:
       Basic                                     $0.25       $0.40       $0.40
       Diluted                                   $0.24       $0.40       $0.40
     Common Dividend Declared Per Share          $0.16       $0.15       $0.15
     EOP Book Value                              $8.43       $8.25       $7.71
     EOP Shares Outstanding:
       Basic                                41,469,791  41,866,752  43,085,988
       Diluted                              41,876,483  42,216,652  43,497,063
     Average Shares Outstanding:
       Basic                                41,590,689  42,167,936  44,399,867
       Diluted                              41,997,381  42,517,836  44,810,942
     HIGH Common Share Price                    $20.44      $19.13      $18.00
     LOW Common Share Price                     $18.06      $14.94      $16.19
 
                INCOME STATEMENT
     Interest Income (FTE)                     117,222     121,093     123,176
     Interest Expense                           50,088      53,633      54,842
       Net Interest Income (FTE)                67,134      67,460      68,334
     Loan Loss Provision                         5,617       4,004       2,976
     Investment Securities Transactions            484           4         (87)
     Trading Account                                 0           0           0
     Foreign Exchange                                0           0           0
     Trust Revenue                               1,506       1,438       1,404
     Insurance Revenue                           3,050       2,583       3,030
     Security Sales Revenue                      1,076       1,121       1,402
     Service Charges on Deposits                 9,453       9,967       9,898
     Other Non-Recurring Revenues                    0           0           0
     Other Non-Interest Revenue                  3,723       3,477       3,513
     Material Non-Recurring Revenue                  0           0           0
       Total Non-Interest Revenues              19,292      18,590      19,160
     Salaries & Benefits                        28,007      27,161      27,889
     Occupancy & Equipment                       8,187       7,877       7,909
     Deposit Insurance Expense                     242         246         248
     Foreclosed Property Expense                   204         218         351
     Other Expenses                             18,257      19,170      19,034
     Material Non-Recurring Expenses             8,118           0           0
     Minority Interest                               0           0           0
       Total Non-Interest Expense               63,015      54,672      55,431
       Pre-Tax Income (FTE)                     17,794      27,374      29,087
     Tax Equivalent Adjustment                   2,047       2,112       2,221
       Reported Pre-Tax Income                  15,747      25,262      26,866
     Taxes                                       5,519       8,303       9,115
       Income before extraordinary items        10,228      16,959      17,751
     Cumulative effect of extraordinary item         0           0           0
       Net Income after extraordinary item      10,228      16,959      17,751
     MEMO:
     Net Tax Applicable to Non-Recurring Items  (2,558)          0           0
     Tax Applicable to Securities Transactions     194           2         (35)
     Common Dividends                            6,656       6,319       6,616
     Preferred Dividends -
       Non-Convertible                               0           0           0
       Convertible                                   0           0           0
     After Tax Interest on Convertible Debt          0           0           0
     EOP Employees (FTE) - As Reported           2,443       2,776       2,696
     EOP Domestic Offices                          155         155         156
 
             AVERAGE BALANCE SHEET
     Taxable Securities                      1,641,600   1,689,150   1,755,148
     Tax-Exempt Securities                     101,610     111,263     121,437
     Domestic Loans                          3,738,045   3,710,339   3,726,967
     Foreign Loans                                   0           0           0
     Other Earning Assets                        7,074      12,719       4,501
     Total Earning Assets                    5,488,329   5,523,471   5,608,053
       Total Assets                          5,997,085   6,058,793   6,175,304
     Savings/NOW Accounts                    1,636,618   1,652,469   1,635,355
     Money Market Deposits                     230,608     237,379     231,939
     Other Consumer Time                     1,444,192   1,545,527   1,588,316
     CD's $100,000 & over                      717,052     651,723     647,359
     Foreign Deposits                                0           0           0
     Short-Term Borrowings                     402,433     400,775     496,717
     Long-Term Borrowings                      123,522     117,490     103,380
     Total Interest-Bearing Liabilities      4,554,425   4,605,363   4,703,066
     Demand Deposits                           900,584     934,825     942,844
     Total Deposits                          4,929,054   5,021,923   5,045,813
     Trust Owned Preferred Security            120,000     120,000     120,000
     Non-Convertible Preferred Equity                0           0           0
     Convertible Preferred Equity                    0           0           0
     Common Equity                             348,051     322,507     335,839
     Total Preferred Equity                          0           0           0
 
              PARENT COMPANY DATA
     EOP Investment in Subsidiaries            513,589     538,437     496,785
     EOP Goodwill                                    0           0           0
 
                 ASSET QUALITY
     EOP Nonaccrual Loans                       22,500      23,426      23,828
     EOP Restructured Loans                        221         224         241
     EOP OREO                                    2,167       2,437       3,656
       Total Non-performing Assets              24,888      26,087      27,725
     Loans > 90 days still accruing              3,423       2,482       2,180
     EOP In-Substance foreclosure                    0           0           0
 
              NON-PERFORMING LOANS
     Construction & Land Development                 0           0           0
     Commercial Mortgages                        8,862      11,034      10,948
     Commercial                                  5,512       4,649       3,402
     Residential Mortgages                       6,058       5,498       6,184
     LDC                                             0           0           0
     Other                                       2,068       2,245       3,294
       Total                                    22,500      23,426      23,828
 
       NET CHARGE-OFFS (current quarter)
     Commercial Real Estate                      2,400           0           0
     Commercial                                  1,264       1,281         729
     Residential Mortgages                         219         459         413
     Consumer                                    1,437       1,773       1,224
     LDC                                             0           0           0
     Agriculture                                   (32)        306         182
     All Other                                       0           0           0
       Total                                     5,288       3,819       2,548
     Gross Charge-offs                           6,520       5,143       3,691
     Gross Recoveries                            1,232       1,324       1,143
 
                 LOAN PORTFOLIO
     Construction & Land Development           493,082     466,616     448,771
     Commercial Mortgages                      739,098     745,149     737,015
     Commercial                                850,303     872,824     880,816
     Real Estate Loans                               0           0           0
     Residential Mortgages                     597,916     577,749     573,125
     Home Equity Loans                         137,269     135,596     127,893
     Credit Cards Outstanding                    8,949       8,758      10,845
     Other Consumer                            680,744     677,306     685,748
     LDC                                             0           0           0
     Foreign                                         0           0           0
     Agriculture                               242,962     254,204     253,098
       Total Loans & Leases                  3,750,323   3,738,202   3,717,311
 
                    EOP DATA
     Loan Loss Reserve                          52,497      52,168      51,983
     Assets                                  5,967,917   6,089,729   6,092,935
     Total Deposits                          4,927,469   5,019,891   5,030,914
     Trust Owned Preferred Security            120,000     120,000     120,000
     Total Preferred Equity                          0           0           0
     Common Equity                             349,631     345,431     332,081
     Convertible Debt                                0           0           0
     Total Long-Term Debt                      120,999     125,971     101,890
     Deposit Intangibles                        29,898      36,118      36,893
     Goodwill                                   66,637      68,813      70,517
     Mortgage Servicing Intangibles                  0           0           0
     Other Intangibles                          10,102      10,040      10,116
       Total Intangibles                       106,637     114,971     117,526
 
             RISK-ADJUSTED CAPITAL
     EOP Risk-Adjusted Total Assets          4,340,115   4,408,524   4,406,364
     Tier I Capital                            357,130     358,255     367,634
     Tier I Ratio                                 8.23%       8.13%       8.34%
     Tier II Capital                           117,555     114,862      87,983
     Total Capital                             474,685     473,117     455,617
     Total Capital Ratio                         10.94%      10.73%      10.34%
     Leverage Ratio                               6.04%       5.94%       6.10%
     Equity to Assets Ratio                       5.86%       5.67%       5.45%
     Tangible Equity to Assets Ratio              4.07%       3.78%       3.52%
 
                EFFICIENCY RATIO
     Net Interest Income                        67,134      67,460      68,334
     Non-Interest Income                        19,292      18,590      19,160
     Less:  Non-Recurring Income                     0           0           0
     Less:  Other Non-Recurring Items             (484)         (4)         87
       Total Revenue                            85,942      86,046      87,581
 
     Non-interest Expense                       63,015      54,672      55,431
     Less:  Non-Recurring Non-Int Expenses      (8,118)          0           0
     Less:  Other Non-Recurring Expenses             0           0           0
       Total Expense                            54,897      54,672      55,431
 
     Efficiency Ratio                            63.88%      63.54%      63.29%
 
              CORE EARNINGS
     Diluted Earnings Per Share - Reported      $0.244      $0.399      $0.396
     Diluted Earnings Per Share - Core
      (Originally Rptd)                         $0.400      $0.399      $0.396
 
           PERFORMANCE RATIOS
     Return on Average Assets                     0.69%       1.11%       1.14%
     Return on Average Equity                    11.92%      20.92%      21.03%
     Net Interest Margin                          4.96%       4.86%       4.85%
 
 
     COMMUNITY FIRST BANKSHARES, INC.
     FINANCIAL DATA WORKSHEET
 
     (In thousands, except per share amounts)          Q2'00             Q1'00
 
     Earnings Per Share:
       Before Extraordinary Items/Cum Effect:
       Basic                                           $0.38             $0.37
       Diluted                                         $0.38             $0.37
       After Extraordinary Items/Cum Effect:
       Basic                                           $0.38             $0.37
       Diluted                                         $0.38             $0.37
     Common Dividend Declared Per Share                $0.15             $0.15
     EOP Book Value                                    $7.66             $8.19
     EOP Shares Outstanding:
       Basic                                      45,569,285        50,426,470
       Diluted                                    45,946,349        50,726,949
     Average Shares Outstanding:
       Basic                                      48,060,322        50,312,866
       Diluted                                    48,437,386        50,613,345
     HIGH Common Share Price                          $17.56            $16.00
     LOW Common Share Price                           $15.19            $12.41
 
                INCOME STATEMENT
     Interest Income (FTE)                          $122,160          $119,723
     Interest Expense                                 52,871            48,935
       Net Interest Income (FTE)                      69,289            70,788
     Loan Loss Provision                               3,811             4,990
     Investment Securities Transactions                  144                 4
     Trading Account                                       0                 0
     Foreign Exchange                                      0                 0
     Trust Revenue                                     1,472             1,497
     Insurance Revenue                                 2,528             2,409
     Security Sales Revenue                            2,321             1,961
     Service Charges on Deposits                      10,009             9,663
     Other Non-Recurring Revenues                          0                 0
     Other Non-Interest Revenue                        2,496             2,951
     Material Non-Recurring Revenue                        0                 0
       Total Non-Interest Revenues                    18,970            18,485
     Salaries & Benefits                              27,788            27,186
     Occupancy & Equipment                             8,005             8,150
     Deposit Insurance Expense                           271               274
     Foreclosed Property Expense                         404               157
     Other Expenses                                   18,601            18,380
     Material Non-Recurring Expenses                       0                 0
     Minority Interest                                     0                 0
       Total Non-Interest Expense                     55,069            54,147
       Pre-Tax Income (FTE)                           29,379            30,136
     Tax Equivalent Adjustment                         1,968             2,293
       Reported Pre-Tax Income                        27,411            27,843
     Taxes                                             9,150             9,180
       Income before extraordinary items              18,261            18,663
     Cumulative effect of extraordinary item               0                 0
       Net Income after extraordinary item            18,261            18,663
     MEMO:
     Net Tax Applicable to Non-Recurring Items             0                 0
     Tax Applicable to Securities Transactions            58                 2
     Common Dividends                                  7,097             7,569
     Preferred Dividends -
       Non-Convertible                                     0                 0
       Convertible                                         0                 0
     After Tax Interest on Convertible Debt                0                 0
     EOP Employees (FTE) - As Reported                 2,716             2,695
     EOP Domestic Offices                                156               156
 
             AVERAGE BALANCE SHEET
     Taxable Securities                            1,827,189         1,851,996
     Tax-Exempt Securities                           135,854           147,439
     Domestic Loans                                3,713,618         3,673,378
     Foreign Loans                                         0                 0
     Other Earning Assets                             16,440            15,922
     Total Earning Assets                          5,693,101         5,688,735
       Total Assets                                6,243,615         6,240,421
     Savings/NOW Accounts                          1,670,853         1,668,260
     Money Market Deposits                           229,667           293,916
     Other Consumer Time                           1,441,223         1,417,127
     CD's $100,000 & over                            645,604           590,579
     Foreign Deposits                                      0                 0
     Short-Term Borrowings                           685,189           694,109
     Long-Term Borrowings                             84,394            77,670
     Total Interest-Bearing Liabilities            4,756,930         4,741,661
     Demand Deposits                                 939,968           908,427
     Total Deposits                                4,927,315         4,878,309
     Trust Owned Preferred Security                  120,000           120,000
     Non-Convertible Preferred Equity                      0                 0
     Convertible Preferred Equity                          0                 0
     Common Equity                                   377,338           405,001
     Total Preferred Equity                                0                 0
 
              PARENT COMPANY DATA
     EOP Investment in Subsidiaries                  591,938           584,921
     EOP Goodwill                                          0                 0
 
                 ASSET QUALITY
     EOP Nonaccrual Loans                             26,473            25,547
     EOP Restructured Loans                              272               277
     EOP OREO                                          5,115             6,667
       Total Non-performing Assets                    31,860            32,491
     Loans > 90 days still accruing                    2,489             3,973
     EOP In-Substance foreclosure                          0                 0
 
              NON-PERFORMING LOANS
     Construction & Land Development                       0                 0
     Commercial Mortgages                             11,277             9,915
     Commercial                                        4,329             5,176
     Residential Mortgages                             7,489             7,720
     LDC                                                   0                 0
     Other                                             3,378             2,736
       Total                                          26,473            25,547
 
       NET CHARGE-OFFS (current quarter)
     Commercial Real Estate                                0                 0
     Commercial                                        1,590             1,479
     Residential Mortgages                               264               289
     Consumer                                          1,006             1,242
     LDC                                                   0                 0
     Agriculture                                         228                26
     All Other                                             0                 0
       Total                                           3,088             3,036
     Gross Charge-offs                                 4,378             3,905
     Gross Recoveries                                  1,290               869
 
                 LOAN PORTFOLIO
     Construction & Land Development                 427,924           408,596
     Commercial Mortgages                            760,793           711,504
     Commercial                                      926,400           995,463
     Real Estate Loans                                     0                 0
     Residential Mortgages                           549,395           532,213
     Home Equity Loans                               112,686           112,338
     Credit Cards Outstanding                         10,594            10,392
     Other Consumer                                  678,342           676,380
     LDC                                                   0                 0
     Foreign                                               0                 0
     Agriculture                                     263,363           240,667
       Total Loans & Leases                        3,729,497         3,687,553
 
                    EOP DATA
     Loan Loss Reserve                                51,555            50,832
     Assets                                        6,278,718         6,248,153
     Total Deposits                                4,981,154         4,906,853
     Trust Owned Preferred Security                  120,000           120,000
     Total Preferred Equity                                0                 0
     Common Equity                                   349,016           413,175
     Convertible Debt                                      0                 0
     Total Long-Term Debt                            102,812            73,353
     Deposit Intangibles                              37,668            38,445
     Goodwill                                         72,157            73,798
     Mortgage Servicing Intangibles                        0                 0
     Other Intangibles                                 9,615             9,246
       Total Intangibles                             119,440           121,489
 
             RISK-ADJUSTED CAPITAL
     EOP Risk-Adjusted Total Assets                4,467,695         4,466,880
     Tier I Capital                                  397,595           463,920
     Tier I Ratio                                       8.90%            10.39%
     Tier II Capital                                  87,556            98,832
     Total Capital                                   485,151           562,752
     Total Capital Ratio                               10.86%            12.60%
     Leverage Ratio                                     6.40%             7.51%
     Equity to Assets Ratio                             5.56%             6.61%
     Tangible Equity to Assets Ratio                    3.66%             4.67%
 
                EFFICIENCY RATIO
     Net Interest Income                              69,289            70,788
     Non-Interest Income                              18,970            18,485
     Less:  Non-Recurring Income                           0                 0
     Less:  Other Non-Recurring Items                   (144)               (4)
       Total Revenue                                  88,115            89,269
 
     Non-interest Expense                             55,069            54,147
     Less:  Non-Recurring Non-Int Expenses                 0                 0
     Less:  Other Non-Recurring Expenses                   0                 0
       Total Expense                                  55,069            54,147
 
     Efficiency Ratio                                  62.50%            60.66%
 
              CORE EARNINGS
     Diluted Earnings Per Share - Reported            $0.377            $0.369
     Diluted Earnings Per Share - Core
      (Originally Rptd)                               $0.377            $0.369
 
           PERFORMANCE RATIOS
     Return on Average Assets                           1.18%             1.20%
     Return on Average Equity                          19.46%            18.53%
     Net Interest Margin                                4.90%             5.00%
 
 
     COMMUNITY FIRST BANKSHARES, INC.
     CONSOLIDATED STATEMENTS OF INCOME
 
     (In thousands, except per share amounts)   Q1 01       Q4 00       Q3 00
     Interest income:
       Loans                                    87,521      89,857      90,276
       Investment securities                    27,556      28,917      30,557
       Interest-bearing deposits                    62          21          43
       Fed funds sold & resale agreements           36         186          79
         Total interest income                 115,175     118,981     120,955
     Interest expense:
       Deposits                                 42,331      45,467      45,072
       Short-term & other borrowings             5,564       6,142       7,965
       Long-term debt                            2,193       2,024       1,805
         Total interest expense                 50,088      53,633      54,842
         Net interest income                    65,087      65,348      66,113
     Provision for loan losses                   5,617       4,004       2,976
     Net interest income after provision
      for loan losses                           59,470      61,344      63,137
     Noninterest income:
       Service charges on deposit accounts       9,453       9,967       9,898
       Insurance commissions                     3,050       2,583       3,030
       Fees from fiduciary activities            1,506       1,438       1,404
       Security sales commissions                1,076       1,121       1,402
       Net gains on sales of available-for-sale
        securities                                 484           4         (87)
       Other                                     3,723       3,477       3,513
         Total noninterest income               19,292      18,590      19,160
     Noninterest expense:
       Salaries & employee benefits             28,007      27,161      27,889
       Net occupancy                             8,187       7,877       7,909
       FDIC insurance                              242         246         248
       Legal and accounting                        835       1,200         886
       Other professional service                1,314       1,264       1,028
       Restructuring charge                      7,656           0           0
       Data processing                             890         997       1,173
       Other real estate and repossessed
        personal property                          204         218         351
       Company-obligated mandatorily redeemable
        preferred securities of CFB
        Capital I & II                           2,561       2,561       2,561
       Amortization of intangibles               2,601       2,621       2,623
       Other                                    10,518      10,527      10,763
         Total noninterest expense              63,015      54,672      55,431
 
     Income before income taxes                 15,747      25,262      26,866
     Provision for income taxes                  5,519       8,303       9,115
     Net income applicable to common equity     10,228      16,959      17,751
     Earnings per common and common
      equivalent share:
     Basic net income                            $0.25       $0.40       $0.40
     Diluted net income                          $0.24       $0.40       $0.40
     Average common shares outstanding:
       Basic                                41,590,689  42,167,936  44,399,867
       Diluted                              41,997,381  42,517,836  44,810,942
 
 
     COMMUNITY FIRST BANKSHARES, INC.
     CONSOLIDATED STATEMENTS OF INCOME
 
     (In thousands, except per share amounts)        Q2 00             Q1 00
     Interest income:
       Loans                                         88,287            84,985
       Investment securities                         31,825            32,226
       Interest-bearing deposits                         52                68
       Fed funds sold & resale agreements                28               151
         Total interest income                      120,192           117,430
     Interest expense:
       Deposits                                      40,862            37,880
       Short-term & other borrowings                 10,508             9,688
       Long-term debt                                 1,501             1,367
         Total interest expense                      52,871            48,935
         Net interest income                         67,321            68,495
     Provision for loan losses                        3,811             4,990
     Net interest income after provision for
      loan losses                                    63,510            63,505
     Noninterest income:
       Service charges on deposit accounts           10,009             9,663
       Insurance commissions                          2,528             2,409
       Fees from fiduciary activities                 1,472             1,497
       Security sales commissions                     2,321             1,961
       Net gains on sales of available-for-sale
        securities                                      144                 4
       Other                                          2,496             2,951
         Total noninterest income                    18,970            18,485
     Noninterest expense:
       Salaries & employee benefits                  27,788            27,186
       Net occupancy                                  8,005             8,150
       FDIC insurance                                   271               274
       Legal and accounting                             987               801
       Other professional service                     1,086             1,037
       Restructuring charge                               0                 0
       Data processing                                1,239             1,136
       Other real estate and repossessed personal
        property                                        404               157
       Company-obligated mandatorily redeemable
        preferred securities of CFB
        Capital I & II                                2,562             2,561
       Amortization of intangibles                    2,614             2,623
       Other                                         10,113            10,222
         Total noninterest expense                   55,069            54,147
 
     Income before income taxes                      27,411            27,843
     Provision for income taxes                       9,150             9,180
     Net income applicable to common equity          18,261            18,663
     Earnings per common and common equivalent
      share:
     Basic net income                                 $0.38             $0.37
     Diluted net income                               $0.38             $0.37
     Average common shares outstanding:
       Basic                                     48,060,322        50,312,866
       Diluted                                   48,437,386        50,613,345
 
 
     COMMUNITY FIRST BANKSHARES, INC.
     CONSOLIDATED BALANCE SHEETS
 
     (In thousands, except per share amounts) 3/31/01     12/31/00    9/30/00
 
                    ASSETS
     Cash & due from banks                     222,669     256,136     214,754
     Fed funds sold and securities purchased
      under agreement to resell                  4,450           0       2,365
     Interest-bearing deposits                   1,430       1,110       1,243
     Available-for-sale securities           1,616,761   1,714,510   1,754,548
     Held-to-maturity securities                74,081      73,222      72,357
     Loans                                   3,750,323   3,738,202   3,717,311
       Less:  Allowance for loan losses        (52,497)    (52,168)    (51,983)
         Net loans                           3,697,826   3,686,034   3,665,328
 
     Bank premises & equipment - net           123,100     121,675     120,010
     Accrued interest receivable                47,697      52,494      57,084
     Intangibles                               106,637     114,971     117,526
     Other assets                               73,266      69,577      87,720
 
     Total assets                            5,967,917   6,089,729   6,092,935
 
     LIABILITIES & SHAREHOLDERS' EQUITY
 
     Deposits:
       Noninterest-Bearing                     461,564     500,834     492,444
       Interest-bearing:
         Savings & NOW accounts              2,304,056   2,349,606   2,311,854
         Time deposits over $100,000           748,514     672,968     645,014
         Other time deposits                 1,413,335   1,496,483   1,581,602
           Total deposits                    4,927,469   5,019,891   5,030,914
     Fed funds purchased and securities
      sold under agreement to repurchase       249,296     205,758     195,444
     Short-term borrowings                     125,582     203,952     244,142
     Long-term debt                            119,272     123,957      99,422
     Capital lease obligations                   1,727       2,014       2,468
     Accrued interest payable                   43,358      45,489      40,452
     Other liabilities                          31,582      23,237      28,012
           Total liabilities                 5,498,286   5,624,298   5,640,854
     Company-obligated mandatorily
      redeemable preferred securities
      of CFB Capital I & II                    120,000     120,000     120,000
 
     Shareholders' equity:
       Common stock                                510         510         510
       Capital surplus                         192,368     192,368     192,071
       Retained earnings                       315,061     315,091     304,906
       SFAS 115 Equity Adjustment                1,806      (9,486)    (33,060)
       Cost of common stock in treasury       (160,114)   (153,052)   (132,346)
           Total shareholders' equity          349,631     345,431     332,081
 
     Total liabilities and shareholders'
      equity                                 5,967,917   6,089,729   6,092,935
 
     Period-end common shares outstanding   41,469,791  41,866,752  43,085,988
 
     Book value per common share                 $8.43       $8.25       $7.71
 
 
     COMMUNITY FIRST BANKSHARES, INC.
     CONSOLIDATED BALANCE SHEETS
 
     (In thousands, except per share amounts)      6/30/00           3/31/00
 
                   ASSETS
     Cash & due from banks                          259,717           218,170
     Fed funds sold and securities purchased
      under agreement to resell                       1,550            11,585
     Interest-bearing deposits                        2,181             3,020
     Available-for-sale securities                1,875,523         1,913,298
     Held-to-maturity securities                     71,539            75,097
     Loans                                        3,729,497         3,687,553
       Less:  Allowance for loan losses             (51,555)          (50,832)
         Net loans                                3,677,942         3,636,721
 
     Bank premises & equipment - net                121,542           123,118
     Accrued interest receivable                     52,292            50,203
     Intangibles                                    119,440           121,489
     Other assets                                    96,992            95,452
 
     Total assets                                 6,278,718         6,248,153
 
     LIABILITIES & SHAREHOLDERS' EQUITY
 
     Deposits:
       Noninterest-Bearing                          683,508           623,150
       Interest-bearing:
         Savings & NOW accounts                   2,164,209         2,231,329
         Time deposits over $100,000                631,251           630,200
         Other time deposits                      1,502,186         1,422,174
           Total deposits                         4,981,154         4,906,853
     Fed funds purchased and securities
       sold under agreement to repurchase           219,469           217,696
     Short-term borrowings                          453,266           458,735
     Long-term debt                                  99,895            69,964
     Capital lease obligations                        2,917             3,389
     Accrued interest payable                        33,471            31,808
     Other liabilities                               19,530            26,533
           Total liabilities                      5,809,702         5,714,978
     Company-obligated mandatorily redeemable
      preferred securities of CFB Capital I & II    120,000           120,000
 
     Shareholders' equity:
       Common stock                                     510               510
       Capital surplus                              192,071           192,071
       Retained earnings                            293,879           283,375
       SFAS 115 Equity Adjustment                   (47,841)          (52,072)
       Cost of common stock in treasury             (89,603)          (10,709)
           Total shareholders' equity               349,016           413,175
 
     Total liabilities and shareholders' equity   6,278,718         6,248,153
 
     Period-end common shares outstanding        45,569,285        50,426,470
 
     Book value per common share                      $7.66             $8.19
 
 
     COMMUNITY FIRST BANKSHARES, INC.
     CONSOLIDATED STATEMENTS OF INCOME
 
                                              For the Three Months Ended
                                                      March 31,           %
     (In thousands, except per share amounts)     2001         2000    Change
     (Dollars in thousands, except per share data)
     Interest income:
       Loans                                     $87,521      $84,985     3%
       Investment securities                      27,556       32,226   -14%
       Interest-bearing deposits                      62           68    -9%
       Federal funds sold and resale agreements       36          151   -76%
     Total interest income                       115,175      117,430    -2%
     Interest expense:
       Deposits                                   42,331       37,880    12%
       Short-term and other borrowings             5,564        9,688   -43%
       Long-term debt                              2,193        1,367    60%
     Total interest expense                       50,088       48,935     2%
     Net interest income                          65,087       68,495    -5%
     Provision for loan losses                     5,617        4,990    13%
     Net interest income after provision for
      loan losses                                 59,470       63,505    -6%
     Noninterest income:
       Service charges on deposit accounts         9,453        9,663    -2%
       Insurance commissions                       3,050        2,409    27%
       Fees from fiduciary activities              1,506        1,497     1%
       Security sales commissions                  1,076        1,961   -45%
       Net gains on sales of securities              484            4    nm
       Other                                       3,723        2,951    26%
     Total noninterest income                     19,292       18,485     4%
     Noninterest expense:
       Salaries and employee benefits             28,007       27,186     3%
       Net occupancy                               8,187        8,150     0%
       FDIC insurance                                242          274   -12%
       Legal and accounting                          835          801     4%
       Other professional service                  1,314        1,037    27%
       Restructuring charge                        7,656            0    nm
       Data processing                               890        1,136   -22%
       Other real estate and repossessed
        personal property                            204          157    30%
       Company-obligated mandatorily redeemable
        preferred securities of CFB
        Capital I & II                             2,561        2,561     0%
       Amortization of intangibles                 2,601        2,623    -1%
       Other                                      10,518       10,222     3%
     Total noninterest expense                    63,015       54,147    16%
     Income from continuing operations before
      income
     Income before income taxes                   15,747       27,843   -43%
     Provision for income taxes                    5,519        9,180   -40%
     Net income applicable to common equity      $10,228      $18,663   -45%
 
     Earnings per common and common equivalent
      share:
     Basic net income                              $0.25        $0.37   -32%
 
     Diluted net income                            $0.24        $0.37   -35%
 
     Average common and common equivalent
      shares outstanding:
       Basic                                  41,590,689   50,312,866   -17%
       Diluted                                41,997,381   50,613,345   -17%
 
 
     COMMUNITY FIRST BANKSHARES, INC.
     CONSOLIDATED BALANCE SHEETS
 
                                              March 31,   December 31,    %
     (In thousands, except per share amounts)   2001         2000       Change
 
     Assets:
     Cash and due from banks                  $222,669      $256,136     -13%
     Federal funds sold and securities
      purchased under agreements to resell       4,450             0       0%
     Interest-bearing deposits                   1,430         1,110      29%
     Available-for-sale securities           1,616,761     1,714,510      -6%
     Held-to-maturity securities                74,081        73,222       1%
     Loans                                   3,750,323     3,738,202       0%
       Less:  Allowance for loan losses        (52,497)      (52,168)      1%
     Net loans                               3,697,826     3,686,034       0%
     Bank premises and equipment, net          123,100       121,675       1%
     Accrued interest receivable                47,697        52,494      -9%
     Intangible assets                         106,637       114,971      -7%
     Other assets                               73,266        69,577       5%
     Total assets                            5,967,917     6,089,729      -2%
     Liabilities and shareholders' equity
     Deposits:
       Noninterest-bearing                     461,564       500,834      -8%
       Interest-bearing:
       Savings and NOW accounts              2,304,056     2,349,606      -2%
       Time accounts over $100,000             748,514       672,968      11%
       Other time accounts                   1,413,335     1,496,483      -6%
     Total deposits                          4,927,469     5,019,891      -2%
     Federal funds purchased and securities
      sold under agreements to repurchase      249,296       205,758      21%
     Other short-term borrowings               125,582       203,952     -38%
     Long-term debt                            119,272       123,957      -4%
     Accrued interest payable                   43,358        45,489      -5%
     Other liabilities                          33,309        25,251      32%
     Total liabilities                       5,498,286     5,624,298      -2%
 
     Company-obligated mandatorily
      redeemable preferred securities of
      CFB Capital I and II                     120,000       120,000       0%
     Shareholders' equity:
       Common stock, par value $.01 per share:
         Authorized Shares - 80,000,000
         Issued Shares - 51,021,896                510           510       0%
 
       Capital surplus                         192,368       192,368       0%
 
       Retained earnings                       315,061       315,091       0%
       Unrealized gain on available-for-sale
        securities, net of tax                   1,806        (9,486)   -119%
       Less cost of common stock in treasury -
        March 31, 2001 - 9,552,105 shares
        December 31, 2000 - 9,155,144 shares  (160,114)     (153,052)      5%
     Total shareholders' equity                349,631       345,431       1%
     Total liabilities and shareholders'
      equity                                $5,967,917    $6,089,729      -2%
 
     Period-end common shares outstanding   41,469,791    41,866,752      -1%
 
     Book value per common share                 $8.43         $8.25       2%
 
 SOURCE  Community First Bankshares, Inc.