<Page>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q

(Mark One)

/X/  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
     ACT OF 1934 for the quarterly period ended December 31, 2001

/ /  TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE EXCHANGE ACT For the
     transition period from ___________ to _______________

Commission File Number: 001-15215

                          SPECTRUM BANCORPORATION, INC.
             (Exact name of registrant as specified in its charter)

                    Iowa                              42-0867112
       (State or other jurisdiction               (I.R.S. Employer
     of incorporation or organization)            Identification No.)

                 10834 Old Mill Road, Suite One, Omaha, NE 68154
               (Address of principal executive office) (Zip code)

                                 (402) 333-8330
              (Registrant's telephone number, including area code)

     Indicate by check mark whether the registrant: (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the past 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for past 90 days. Yes /X/ No / /

     Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practical date.

                    Class                    Outstanding at February 1, 2002

Common Stock, $1.00 par value                         125,267 shares

<Page>

                          SPECTRUM BANCORPORATION, INC.
                      INDEX TO FORM 10-Q FOR THE QUARTERLY
                         PERIOD ENDED DECEMBER 31, 2001

<Table>
<S>                                                                        <C>
PART I:   FINANCIAL INFORMATION                                            PAGE

     ITEM 1:   FINANCIAL STATEMENTS

          Consolidated Balance Sheets at December 31, 2001
          and June 30, 2001 (unaudited) ..................................  3

          Consolidated Statements of Income - Three months ended
          December 31, 2001 and December 31, 2000 (unaudited) ............  4

          Consolidated Statements of Income - Six months ended
          December 31, 2001 and December 31, 2000 (unaudited) ............  5

          Consolidated Statements of Cash Flows - Six months ended
          December 31, 2001 and December 31, 2000 (unaudited) ............  6

          Notes to Consolidated Financial Statements .....................  7

     ITEM 2:   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
               CONDITION AND RESULTS OF OPERATION ........................  9

     ITEM 3:   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT
               MARKET RISK ............................................... 12

PART II:  OTHER INFORMATION

     ITEM 1:   LEGAL PROCEEDINGS ......................................... 13

     ITEM 2:   CHANGES IN SECURITIES AND USE OF PROCEEDS ................. 13

     ITEM 3:   DEFAULTS UPON SENIOR SECURITIES ........................... 13

     ITEM 4:   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS ....... 13

     ITEM 5:   OTHER INFORMATION ......................................... 13

     ITEM 6:   EXHIBITS AND REPORTS ON FORM 8-K .......................... 13

               SIGNATURES ................................................ 14
</Table>


                                                                               2
<Page>

                                     PART I
                              FINANCIAL INFORMATION

                          SPECTRUM BANCORPORATION, INC.
                           Consolidated Balance Sheets
                        (In thousands, except share data)
                                   (unaudited)

<Table>
<Caption>
                                                                          December 31,     June 30,
                                                                              2001           2001
                                                                          ------------    ----------
<S>                                                                        <C>            <C>
                                     Assets
Cash and due from banks                                                    $   58,016     $   55,744
Federal funds sold                                                             41,106         50,692
                                                                           ----------     ----------
               Total cash and cash equivalents                                 99,122        106,436

Certificates of deposit                                                           696          1,533
Securities available for sale                                                 269,015        265,010
Loans receivable, net                                                       1,334,407      1,284,094
Premises and equipment, net                                                    38,646         37,035
Accrued interest receivable                                                    13,774         14,454
Intangibles assets                                                             10,478         11,692
Goodwill                                                                       35,132         35,132
Mortgage servicing rights                                                      13,027         18,366
Other assets                                                                   10,404          8,370
                                                                           ----------     ----------
                                                                           $1,824,701     $1,782,122
                                                                           ==========     ==========

                      Liabilities and Stockholders' Equity
Liabilities:
     Deposits
          Non interest bearing                                             $  209,579     $  161,409
          Interest bearing                                                  1,262,754      1,259,681
                                                                           ----------     ----------
               Total deposits                                               1,472,333      1,421,090
     Federal funds purchased and securities
       sold under agreements to repurchase                                     65,093         63,211
     Notes payable                                                            115,189        117,730
     Company obligated mandatorily redeemable
       preferred securities of subsidiary trust
       holding solely subordinated debentures                                  48,000         48,000
     Accrued interest and other liabilities                                    18,449         30,837
                                                                           ----------     ----------
                                                                            1,719,064      1,680,868
                                                                           ----------     ----------

Minority interest in subsidiaries                                               4,517          4,328
                                                                           ----------     ----------

Commitments and contingencies

Stockholders' equity:
     Preferred stock, $100 par value; 500,000 shares
       authorized; issued and outstanding: 9,000 shares of
       8% cumulative, nonvoting; 8,000 shares of 10%
       noncumulative, nonvoting; 100,000 shares of variable
       rate, noncumulative, nonvoting                                          11,700         11,700
     Common stock, $1.00 par value, authorized 1,000,000 shares,
       issued and outstanding 125,267 shares                                      125            125
     Additional paid in capital                                                 2,064          2,064
     Retained earnings                                                         85,112         80,792
     Accumulated other comprehensive income                                     2,119          2,245
                                                                           ----------     ----------
               Total stockholders' equity                                     101,120         96,926
                                                                           ----------     ----------

                                                                           $1,824,701     $1,782,122
                                                                           ==========     ==========
</Table>

                 See Notes to Consolidated Financial Statements.


                                                                               3
<Page>

                          SPECTRUM BANCORPORATION, INC.
                        Consolidated Statements of Income
                           For The Three Months Ended
                 (In thousands, except share and per share data)
                                   (unaudited)

<Table>
<Caption>
                                                                     December 31,   December 31,
                                                                         2001           2000
                                                                     ------------   ------------
<S>                                                                   <C>            <C>
Interest income on:
     Loans receivable                                                 $   27,222     $   16,223
     Taxable securities                                                    3,626          1,965
     Nontaxable securities                                                   265            239
     Dividends on securities                                                  79             61
     Federal funds sold and other                                            300            972
                                                                      ----------     ----------
                                                                          31,492         19,460
                                                                      ----------     ----------
Interest expense on:
     Deposits                                                             11,856          9,382
     Federal funds purchased and securities sold
       under agreements to repurchase                                        453            176
     Notes payable and company obligated mandatorily
       redeemable preferred securities                                     3,047          1,757
                                                                      ----------     ----------
                                                                          15,356         11,315
                                                                      ----------     ----------

          Net interest income                                             16,136          8,145
Provision for loan losses                                                  2,300            540
                                                                      ----------     ----------

          Net interest income after provision for
            loan losses                                                   13,836          7,605
                                                                      ----------     ----------

Other income:
     Service charges and other fees                                        2,520          1,406
     Net gains from sale of loans                                          1,216            286
     Loan servicing fees                                                     793              0
     Gain on securities, net                                                  61              0
     Trust department income                                                 452             98
     Other                                                                   753            384
                                                                      ----------     ----------
                                                                           5,795          2,174
                                                                      ----------     ----------

Other expenses:
     Salaries and employee benefits                                        6,973          3,409
     Occupancy expenses, net                                                 904            465
     Data processing                                                         712            421
     Equipment expenses                                                      639            280
     Advertising                                                             571            194
     Amortization of goodwill                                                  0             96
     Amortization of intangible assets                                       740             97
     Amortization of mortgage servicing rights                                85              0
     Other operating expenses                                              2,708          1,496
                                                                      ----------     ----------
                                                                          13,332          6,458
                                                                      ----------     ----------

          Income before income taxes and minority
            interest in net income of subsidiaries                         6,299          3,321
Income taxes                                                               2,250          1,211
                                                                      ----------     ----------

          Income before minority interest in net
            income of subsidiaries                                         4,049          2,110
Minority interest in net income of subsidiaries                               90            119
                                                                      ----------     ----------

       Net income                                                     $    3,959     $    1,991
                                                                      ==========     ==========

Basic earnings per common share                                       $    31.30     $    24.70
                                                                      ==========     ==========

Dividends per share declared on common stock                          $     1.50     $      .70
                                                                      ==========     ==========

Weighted average shares outstanding                                      125,267         79,068
                                                                      ==========     ==========
</Table>

                 See Notes to Consolidated Financial Statements.


                                                                               4
<Page>

                          SPECTRUM BANCORPORATION, INC.
                        Consolidated Statements of Income
                            For The Six Months Ended
                 (In thousands, except share and per share data)
                                   (unaudited)

<Table>
<Caption>
                                                                     December 31,   December 31,
                                                                         2001           2000
                                                                     ------------   ------------
<S>                                                                   <C>            <C>
Interest income on:
     Loans receivable                                                 $   55,486     $   32,333
     Taxable securities                                                    7,345          4,232
     Nontaxable securities                                                   536            479
     Dividends on securities                                                 166            122
     Federal funds sold and other                                            829          1,177
                                                                      ----------     ----------
                                                                          64,362         38,343
                                                                      ----------     ----------
Interest expense on:
     Deposits                                                             25,777         17,889
     Federal funds purchased and securities sold
       under agreements to repurchase                                      1,048            506
     Notes payable and company obligated mandatorily
       redeemable preferred securities                                     6,144          3,202
                                                                      ----------     ----------
                                                                          32,969         21,597
                                                                      ----------     ----------

          Net interest income                                             31,393         16,746
Provision for loan losses                                                  3,461          1,052
                                                                      ----------     ----------

          Net interest income after provision for
            loan losses                                                   27,932         15,694
                                                                      ----------     ----------

Other income:
     Service charges and other fees                                        5,033          2,761
     Net gains from sale of loans                                          1,712            469
     Loan servicing fees                                                   1,674              0
     Gain on securities, net                                                 176             13
     Trust department income                                                 832            172
     Other                                                                 1,546            766
                                                                      ----------     ----------
                                                                          10,973          4,181
                                                                      ----------     ----------

Other expenses:
     Salaries and employee benefits                                       13,703          6,650
     Occupancy expenses, net                                               1,804            858
     Data processing                                                       1,466            919
     Equipment expenses                                                    1,261            506
     Advertising                                                           1,137            511
     Amortization of goodwill                                                  0            182
     Amortization of intangible assets                                     1,289            195
     Amortization of mortgage servicing rights                             4,879              0
     Other operating expenses                                              4,988          2,750
                                                                      ----------     ----------
                                                                          30,527         12,571
                                                                      ----------     ----------

          Income before income taxes and minority
            interest in net income of subsidiaries                         8,378          7,304
Income taxes                                                               2,972          2,387
                                                                      ----------     ----------

          Income before minority interest in net
            income of subsidiaries                                         5,406          4,917
Minority interest in net income of subsidiaries                              314            240
                                                                      ----------     ----------

          Net income                                                  $    5,092     $    4,677
                                                                      ==========     ==========

Basic earnings per common share                                       $    37.48     $    58.19
                                                                      ==========     ==========

Dividends per share declared on common stock                          $     3.00     $    16.51
                                                                      ==========     ==========

Weighted average shares outstanding                                      125,267         79,068
                                                                      ==========     ==========
</Table>

                 See Notes to Consolidated Financial Statements.


                                                                               5
<Page>

                          SPECTRUM BANCORPORATION, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                            FOR THE SIX MONTHS ENDED
                                 (IN THOUSANDS)
                                   (UNAUDITED)

<Table>
<Caption>
                                                                          December 31,   December 31,
                                                                              2001           2000
                                                                          ------------   ------------
<S>                                                                        <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES

     NET CASH PROVIDED BY OPERATING ACTIVITIES                             $    2,300     $    4,115
                                                                           ----------     ----------

CASH FLOWS FROM INVESTING ACTIVITIES
     Proceeds from sales and maturities of securities
       available for sale                                                      63,680         21,851
     Purchase of securities available for sale                                (67,635)       (17,745)
     Proceeds from maturities of certificates of deposit                        5,036          2,574
     Purchase of certificates of deposit                                       (4,199)        (5,065)
     Proceeds from sale of other real estate owned                                358              0
     Business acquisitions (See below)                                              0           (238)
     Net increase in loans                                                    (44,243)       (11,261)
     Proceeds from sale of premises and equipment                                  36              4
     Purchase of premises and equipment                                        (3,238)        (2,062)
     Purchase of mortgage servicing rights                                        (10)             0
     Proceeds from sale of mortgage servicing rights                               38              0
                                                                           ----------     ----------
          NET CASH (USED IN) INVESTING ACTIVITIES                             (50,177)       (11,942)
                                                                           ----------     ----------

CASH FLOWS FROM FINANCING ACTIVITIES
     Net increase in deposits                                                  51,243         49,593
     Net increase in federal funds purchased and
       securities sold under agreements to repurchase                           1,882          3,816
     Proceeds from notes payable                                                6,415         18,500
     Payment of other liabilities                                              (9,141)             0
     Principal payments on notes payable                                       (8,956)       (22,265)
     Purchase of minority interest                                                  0          1,063
     Dividends paid, including ($108) and ($24) paid to
       minority interest, respectively                                           (880)          (205)
                                                                           ----------     ----------
          NET CASH PROVIDED BY FINANCING ACTIVITIES                            40,563         50,502
                                                                           ----------     ----------

               NET INCREASE (DECREASE) IN CASH AND CASH
                 EQUIVALENTS                                                   (7,314)        42,675

Cash and cash equivalents:
     Beginning                                                                106,436         41,126
                                                                           ----------     ----------
     Ending                                                                $   99,122     $   83,801
                                                                           ==========     ==========

Supplemental Disclosures of Cash Flow Information
     Cash payments for:
          Interest                                                         $   34,160     $   18,008
          Income taxes                                                          6,171          2,779

Supplemental Schedules of Noncash Investing and
     Financing Activities:
     Net change in unrealized gain (loss) on
       securities available for sale                                             (126)         2,795
     Dividend declared in the form of notes payable                                 0          1,200

Business acquisitions, net of cash and cash equivalents
  acquired, allocated to:
Assets
     Securities                                                                           $   10,055
     Loans receivable                                                                         48,989
     Other assets                                                                              2,197
     Premises and equipment                                                                    1,445
     Cost in excess of net assets acquired                                                     2,267
Liabilities assumed
     Deposits                                                                                (59,496)
     Other liabilities                                                                        (5,219)
                                                                                          ----------

Net cash and cash equivalents used                                                        $      238
                                                                                          ==========
</Table>

                 See Notes to Consolidated Financial Statements.


                                                                               6
<Page>

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

     1.   Basis of presentation.

     The consolidated financial statements include the accounts of the Company
and its subsidiaries. All material intercompany accounts and transactions with
subsidiaries are eliminated in consolidation.

     The consolidated subsidiaries are as follows: Great Western Bank (100.0%
owned), which is chartered in Omaha, Nebraska; F&M Bank (95.6% owned), which is
chartered in Watertown, South Dakota; Rushmore Bank & Trust (90.0% owned), which
is chartered in Rapid City, South Dakota; Citizens Bank, Mount Ayr (100.0%
owned), which is chartered in Mount Ayr, Iowa; Citizens Bank, Clive (95.2%
owned), which is chartered in Clive, Iowa; Citizens Bank of Princeton (100.0%
owned), which is chartered in Princeton, Missouri; Spectrum Banc Service
Corporation (100.0% owned by bank subsidiaries, excluding Great Western Bank), a
data processing organization; Spectrum Capital Trust I (100.0% owned); and
Spectrum Capital Trust II (100.0% owned). Rushmore Bank & Trust also owns 99.0%
of Ameriloan, LLC, a loan origination company, which is currently inactive.
Great Western Bank also owns 100.0% of GW Leasing, Inc., a leasing company.

     The June 30, 2001 consolidated balance sheet has been derived from the
audited balance sheet as of that date for the Company. The consolidated
financial statements as of December 31, 2001 and for the three months ended and
six months ended December 31, 2001 and 2000 are unaudited but include all
adjustments (consisting only of normal recurring adjustments), which the Company
considers necessary for a fair presentation of financial position and results of
its operation and its cash flows for those periods. Results for the three and
six months ended December 31, 2001 are not necessarily indicative of the results
to be expected for the entire year.

     2.   Earnings per common share.

     Earnings per share have been computed on the basis of weighted average
number of common shares outstanding during each period presented. Dividends
accumulated or declared on cumulative and noncumulative preferred stock, which
totaled $38,000 and $38,000 in each of the three months ended December 31, 2001
and 2000 and totaled $397,000 and $76,000 for the six months end December 31,
2001 and 2000, reduced earnings available to common stockholders in the
computation.

     3.   Comprehensive Income.

     Comprehensive income was $2,273,000 and $3,489,000 for the three months
ended December 31, 2001 and 2000 and $4,966,000 and $7,472,000 for the six
months ended December 31, 2001 and 2000. The difference between comprehensive
income and net income presented in the Consolidated Statements of Income is
attributed solely to change in unrealized gains and losses on securities
available for sale during the periods presented.

     4.   Intangible Assets.

     On July 1, 2001, the Company elected early adoption of Statement of
Financial Accounting Standards No. 141, "Business Combinations," and No. 142,
"Goodwill and Other Intangible Assets" (SFAS 141 and 142). SFAS 141 addresses
financial accounting and reporting for business combinations and replaces APB
Opinion No. 16, "Business Combinations" (APB 16). SFAS 141 no longer allows the
pooling of interests method of accounting for acquisitions, provides new
recognition criteria for intangible assets and carries forward without
reconsideration the guidance in APB 16 related to the application of the
purchase method of accounting. SFAS 142 addresses financial accounting and
reporting for acquired goodwill and other intangible assets and replaces APB
Opinion No. 17, "Intangible Assets." SFAS 142 addresses how intangible assets
should be accounted for upon their acquisition and after they have been
initially recognized in the financial statements. The new standards provide
specific guidance on measuring goodwill for impairment annually using a two-step
process. The first step identifies potential impairment and the second step
measures the amount of goodwill impairment loss to be recognized.

     The Company has identified those intangible assets that remain separable
under the provisions of the new standard and those that are to be included in
goodwill. In applying SFAS 142, the Company has re-evaluated the useful lives of
these separable intangible assets. The weighted average life of the remaining
amortized intangible assets is 9 years. In the year of adoption, SFAS 142
requires the first step of the goodwill impairment test to be completed within
the first six months and the final step to be completed within twelve months of
adoption. The first step of the test was completed during the quarter ended
December 31,


                                                                               7
<Page>

2001 and no indications of goodwill impairment were found; therefore, step two
of the goodwill impairment test is not applicable.

     Had the provisions of SFAS 141 and 142 been applied in fiscal year 2001,
the Company's net income (in thousands) and net income per share would have been
as follows:

<Table>
<Caption>
                                                    3 Months ended
                                                   December 31,2000
                                                ----------------------
                                                Net Income   Per Share
                                                ----------   ---------
<S>                                               <C>        <C>
          Net Income:
               As reported                        $1,991     $24.70
               Add: Goodwill amortization             96       1.22
                                                  ------     ------

                    Pro forma net income          $2,087     $25.92
                                                  ======     ======
</Table>
<Table>
<Caption>
                                                    6 Months ended
                                                   December 31,2000
                                                ----------------------
                                                Net Income   Per Share
                                                ----------   ---------
<S>                                               <C>        <C>
          Net Income:
               As reported                        $4,677     $58.19
               Add: Goodwill amortization            182       2.30
                                                  ------     ------

                    Pro forma net income          $4,859     $60.49
                                                  ======     ======
</Table>

<Table>
<Caption>
                                                  December 31, 2001                              June 30, 2001
                                     ----------------------------------------       ----------------------------------------
                                                                          (in thousands)
                                      Gross                                          Gross
                                     Carrying     Accumulated                       Carrying     Accumulated
                                      Amount      Amortization     Impairment        Amount      Amortization     Impairment
                                     --------     ------------     ----------       --------     ------------     ----------
<S>                                   <C>            <C>             <C>             <C>            <C>             <C>
Amortized intangible
  assets:
     Mortgage servicing
       rights                         $20,684        $(4,813)        $(2,844)        $21,185        $(2,782)        $   (37)
     Core deposit
       intangibles                      6,775         (1,637)             (0)          6,775           (565)             (0)
     Other                              6,179           (839)             (0)          6,104           (622)             (0)
                                      -------        -------         -------         -------        -------         -------

          Total intangible
            assets                    $33,638        $(7,289)         (2,844)        $34,064        $(3,969)        $   (37)
                                      =======        =======         =======         =======        =======         =======
</Table>

     Amortization of intangible assets for the three months ended December 31,
2001 and six months ended December 31, 2001 was $825,000 and $6,168,000,
respectively. Estimated amortization of intangible assets for fiscal years 2002,
2003, 2004, 2005, and 2006 is $3,802,000, $4,460,000, $3,716,000, $2,945,000 and
$2,218,000, respectively.

     5.   Legal Proceedings

     Spectrum and its subsidiary banks are from time to time parties to various
legal actions arising in the normal course of business. Management of Spectrum
believes there is no proceeding threatened or pending against Spectrum or its
subsidiaries, which, if determined adversely, would have a material adverse
effect on the financial condition or results of operations of Spectrum.

     On November 21, 2000, certain purported class action members filed an
amended petition in an action then pending in an Iowa district court in Lee
County, Iowa against Thousand Adventures, Inc., also known as TAI, to add as
defendants 18 lenders, including Great Western Bank, with respect to retail
installment sales contracts originated by TAI in connection with its sale of
campground memberships. The amended petition alleges that more than 50,000 class
members purchased campground memberships at a cost ranging from $990 to $10,000
and that TAI assigned the contracts outright or as collateral to the lenders.
The


                                                                               8
<Page>

primary claim of the amended petition appears to be that the lenders, as
holders of the installment contracts, are subject to all claims the members had
against TAI, which allegedly include breach of contract and consumer fraud,
among other things. The amended petition seeks rescission of the campground
memberships, an unspecified amount of damages, punitive damages, interest and
attorneys' fees. In July 1997 a default judgment was entered against TAI
certifying that action against it as a class action. TAI is the debtor in a
Chapter 7 bankruptcy proceeding pending in federal bankruptcy court in Iowa.

     On October 19, 2001, in the Iowa District Court in Lee County, Iowa, Great
Western Bank was dismissed as a defendant in the above-described action and was
named as sole defendant in a new proceeding, all pursuant to a pending final
settlement agreement. On October 19, 2001, the Court also gave its preliminary
approval to this pending final settlement agreement. Notice of the pending
settlement agreement was mailed to members of the class, and a hearing to
finally approve the pending settlement agreement was held November 9, 2001 at
which the pending settlement agreement became final. The time for appeal has
expired with no appeal filed. As a result of the final settlement, the amount of
potential claims Great Western Bank will be obligated to pay will not have a
material adverse effect on the financial condition or results of operations of
either Great Western Bank or Spectrum.

     6.   Purchase Commitments

     On November 8, 2001, F&M Bank, a subsidiary of Spectrum Bancorporation,
Inc., has agreed to acquire First Western Bank, N.A., Atkinson, Nebraska ("First
Western") and Marquette Bank Nebraska, N.A., O'Neill, Nebraska ("Marquette") for
$18,100,000, subject to adjustment for certain contingencies. At December 31,
2001 First Western had assets of $65,497,000, deposits of $58,558,000, net loans
of $40,459,000 and stockholders' equity of $6,445,000 and Marquette had assets
of $49,377,000, deposits of $41,555,000, net loans of $22,592,000 and
stockholders' equity of $6,789,000. All regulatory approvals have been obtained
and the transaction is expected to close March 1, 2002.

                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATION

GENERAL

     The Company is a multi-bank holding company organized under the laws of
Iowa whose primary business is providing trust, commercial, consumer, and
mortgage banking services through its Nebraska, South Dakota, Iowa and Missouri
based subsidiary banks. Substantially all of the Company's income is generated
from banking operations.

     The Company's fiscal year end is June 30.

FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES

     Total average assets were $1,802,263,000 for the six months ended December
31, 2001, compared to $917,464,000 for the six months ended December 31, 2000, a
96.4% increase. Average interest-earning assets were $1,647,000,000 for the six
months ended December 31, 2001 and $852,692,000 for the six months ended
December 31, 2000, representing a 93.2% increase. Assets increased primarily due
to bank acquisitions and internal loan growth funded by deposits.

     Total assets were $1,824,701,000 at December 31, 2001, an increase of
$42,579,000 or 2.4% from June 30, 2001. Loans, net of unearned fees, grew
$51,919,000 or 4.0% during the six months ended December 31, 2001 due to
internal growth. An increase in deposits and a reduction of federal funds sold
funded the loan growth.

     The allowance for loan losses increased to $20,561,000 at December 31, 2001
from $18,955,000 at June 30, 2001. The allowance represented 1.5% and 1.5% of
total loans as of December 31, 2001 and June 30, 2001. The increase in allowance
for loan losses was due primarily to an increase in loan loss provisions in the
six months ended December 31, 2001. See "Provision for Loan Losses".

     For the six months ended December 31, 2001, the Company's annualized return
on average assets ("ROA") was 0.57%, compared to 1.02% for the six months ended
December 31, 2000. Return on average stockholders' equity ("ROE") for the six
months ended December 31, 2001 and 2000 was 10.2% and 18.4%, respectively. The
decrease in ROA and ROE is due primarily to amortization and a market adjustment
loss in mortgage servicing rights acquired of $3,172,000 net of taxes taken in
the 6 months ended December 31, 2001.


                                                                               9
<Page>

     Cash and cash equivalents, certificates of deposit and securities available
for sale totaled $368,833,000 or 20.2% of total assets at December 31, 2001,
compared to $372,979,000 or 20.9%, at June 30, 2001. The slight decrease is
primarily due to a payment of other liabilities.

     At December 31, 2001, the Company's leverage ratio was 5.1%, Tier 1
risk-based capital ratio was 6.3%, and total risk-based capital ratio was 11.1%,
compared to minimum required levels of 4% for leverage and Tier 1 risk-based
capital ratios and 8% for total risk-based capital ratio, subject to change at
the discretion of regulatory authorities to impose higher standards in
individual cases. At December 31, 2001, the Company had net risk-weighted assets
of $1,427,068,000.

ACQUISITIONS

     On March 23, 2001 the Company acquired by merger Great Western Securities,
a holding company for Great Western Bank, Omaha, Nebraska. Spectrum also
acquired from an unrelated party the 4.67% of Great Western Bank, which Great
Western Securities did not own. The merger was accounted for as a purchase.
Assets of $650,159,000; loans, net of unearned fees, of $518,399,000; and
deposits of $505,981,000 were acquired. Following the acquisition, Great Western
Bank is the largest subsidiary of the Company. Great Western Bank has 14
locations in the Omaha, Nebraska area.

     Deryl F. Hamann, Chairman, Chief Executive Officer and principal
shareholder of Spectrum, owned as trustee for his children, 50% of the common
stock of Great Western Securities. As a result of the merger, the trusts
received 46,319 shares of common stock of Spectrum, constituting 36.94% of
Spectrum's outstanding common stock. This aspect of the merger was not an arm's
length transaction because Mr. Hamann and members of his family owned
substantially all of the common stock of Spectrum before the merger and own
substantially all of the common stock of Spectrum after the merger. The number
of shares of common stock of Spectrum issued in the merger to the trusts was
determined by a valuation dated as of November 30, 2000 by The Financial
Valuation Group, an unaffiliated party.

     The remaining 50% of the common stock of Great Western Securities, all of
its outstanding preferred stock and 4.67% of the common stock of Great Western
Bank were acquired pursuant to the merger from Jack K. Harvey, an unrelated
party, for a total of $58,348,384 in cash and $10,000,000 of Spectrum's series 3
nonvoting, non-cumulative perpetual preferred stock. The coupon of the Series 3
preferred stock at the issue date was 9% and will be adjusted each January 1 to
a rate, which is one percent over the Prime Rate published in the Wall Street
Journal. Coupon payments are payable semi-annually. This aspect of the merger
was an arm's length transaction, which was negotiated by Mr. Hamann, on behalf
of Spectrum, and Jack K. Harvey.

     Spectrum funded the $58,348,384 of cash needed in the acquisition as
follows:

-    $35,000,000 of proceeds from the sale of Spectrum's subordinated capital
     notes to Capital Investors, LLC, a Nebraska limited liability company owned
     by certain common stockholders of Spectrum.

-    $23,348,384 from the net proceeds to Spectrum of the sale of its junior
     subordinated debentures, which were purchased by Spectrum Capital Trust II,
     its 100% owned subsidiary, with the proceeds from the sale of preferred
     securities by Spectrum Capital Trust II to the public under a Form S-1
     Registration Statement.

     Capital Investors, LLC is a special purpose entity owned by stockholders of
Spectrum for the purpose of financing the purchase of Spectrum's subordinated
capital notes. The subordinated capital notes bear interest at a floating rate
of one percent over the Prime Rate and are due March 23, 2011 with interest
payable quarterly. Spectrum has the right to prepay the subordinated capital
notes without penalty. Spectrum's obligations under its preferred securities
guarantee and the junior subordinated debentures are unsecured and rank junior
to Spectrum's obligations under its subordinated capital notes.

     As of March 31, 2001 F&M Bank acquired by merger Founders Trust National
Bank, Sioux Falls, South Dakota for $2,501,000, subject to adjustment for
certain contingencies. At March 31, 2001 Founders had assets of $34,644,000,
deposits of $31,588,000, net loans of $17,762,000 and stockholders' equity of
$2,183,000. The acquisition has been accounted for as a purchase and results of
operation of Founders Trust National Bank after the date of acquisition are
included in the consolidated financial statements.


                                                                              10
<Page>

RESULTS OF OPERATION

COMPARISON OF THE THREE MONTHS ENDED DECEMBER 31, 2001 AND DECEMBER 31, 2000.

Net Interest Income

     Total interest income for the three months ended December 31, 2001 was
$31,492,000, a 61.8% increase over $19,460,000 for the three months ended
December 31, 2000. The increase was primarily the result of acquisitions.

     Total interest expense for the three months ended December 31, 2001 was
$15,356,000, a 35.7% increase over $11,315,000 for the three months ended
December 31, 2000. The increase was the result of bank acquisitions, which
increased notes payable, interest bearing deposits, subordinated debentures and
other borrowings offset by a general decline in rates paid on liabilities.
Average total interest-bearing liabilities increased by $705,942,000 or 89.3%
during the three months ended December 31, 2001 compared to the same period in
fiscal 2001, primarily due to bank acquisitions.

     Net interest income was $16,136,000 for the three months ended December 31,
2001, compared to $8,145,000 for the same period in 2000, an increase of 98.1%.
The Company's net interest margin decreased to 3.6% for the three months ended
December 31, 2001 from 3.7% for the three months ended December 31, 2000. The
decrease in the net interest margin was primarily caused by a decrease in the
average cost of deposits and borrowings combined with a larger decrease in
average interest earned on loans, securities and federal funds sold.

Provision for Loan Losses

     The provision for loan losses for the three months ended December 31, 2001,
was $2,300,000, compared to $540,000 for the three months ended December 31,
2000. The increase was primarily due to an increase in estimated loan losses.
One loan accounted for approximately 76.4% of the increase in the provision for
loan losses.

Other Income

     Other income for the three months ended December 31, 2001 was $5,795,000,
an increase of $3,621,000, or 166.6%, over the same period last fiscal year. The
increase resulted primarily from an increase of $1,114,000 in service charges
and other fees due to bank acquisitions, an increase of $793,000 in loan
servicing fees due to bank acquisitions and a $930,000 in gains from the sale of
mortgage loans.

Other Expense

     Other expense for the three months ended December 31, 2001 was $13,332,000,
an increase of $6,874,000, or 106.4%, over the same period last fiscal year.
Salaries and employee benefits expense increased $3,564,000, other operating
expenses (e.g. bank fees, audit, insurance, courier and communication expenses)
increased $1,212,000 and amortization of intangible assets increased $643,000
due primarily to bank acquisitions.

Income Taxes

     Income taxes for the three months ended December 31, 2001 and December 31,
2000 were $2,250,000 and $1,211,000. The effective tax rates for those periods
were 35.7% and 36.5%. The effective tax rates are expected to be approximately
35% in the future.

COMPARISON OF THE SIX MONTHS ENDED DECEMBER 31, 2001 AND DECEMBER 31, 2000.

Net Interest Income

     Total interest income for the six months ended December 31, 2001 was
$64,362,000, a 67.9% increase over $38,343,000 for the six months ended December
31, 2000. The increase was primarily the result of acquisitions.

     Total interest expense for the six months ended December 31, 2001 was
$32,969,000, a 52.6% increase over $21,597,000 for the six months ended December
31, 2000. The increase was the result of bank acquisitions, which increased
notes payable, interest bearing deposits, subordinated debentures and other
borrowings offset by a general decline in rates paid on liabilities. Average
total interest-bearing liabilities increased by $700,894,000 or 87.8% during the
six months ended December 31, 2001 compared to the same period in fiscal 2000,
primarily due to bank acquisitions.


                                                                              11
<Page>

     Net interest income was $31,393,000 for the six months ended December 31,
2001, compared to $16,746,000 for the same period in 2000, an increase of 87.5%.
The Company's net interest margin decreased to 3.5% for the six months ended
December 31, 2001 from 3.9% for the six months ended December 31, 2000. The
decrease in the net interest margin was primarily caused by a decrease in the
average cost of deposits and borrowings combined with a larger decrease in
average interest earned on loans, securities and federal funds sold.

Provision for Loan Losses

     The provision for loan losses for the six months ended December 31, 2001,
was $3,461,000, compared to $1,052,000 for the six months ended December 31,
2000. The increase was primarily due to an increase in estimated loan losses.
One loan accounted for approximately 55.9% of the increase in the provision
for loan losses.

Other Income

     Other income for the six months ended December 31, 2001 was $10,973,000, an
increase of $6,792,000, or 162.5%, over the same period last fiscal year. The
increase resulted primarily from an increase of $2,272,000 in service charges
and other fees due to bank acquisitions, an increase of $1,674,000 in loan
servicing fees due to bank acquisitions and an increase of $1,243,000 in gains
from the sale of mortgage loans.

Other Expense

     Other expense for the six months ended December 31, 2001 was $30,527,000,
an increase of $17,956,000, or 142.8%, over the same period last fiscal year.
Salaries and employee benefits expense increased $7,053,000 and amortization of
mortgage servicing rights increased $4,879,000.

     $2,844,000 of the amortization of mortgage servicing rights was the result
of recognizing a valuation allowance due to a change in the estimated future
prepayment rates of the servicing portfolio caused by a declining interest rate
environment in the 6 months ended December 31, 2001. In the 3 months ended
December 31, 2001 there was a reduction of $1,210,000 in the valuation allowance
to $2,844,000 from $4,054,000 at the quarter ended September 30, 2001. This
decrease resulted from recognizing a valuation allowance due to a change in the
estimated future prepayment rates of the servicing portfolio caused by an
increasing interest rate environment in the quarter ended December 31, 2001.

     A decline in mortgage interest rates in future periods may result in
further changes in prepayment rates and further acceleration in amortization
expenses, the result of which will be estimated at the end of each quarterly
period.

Income Taxes

     Income taxes for the six months ended December 31, 2001 and December 31,
2000 were $2,972,000 and $2,387,000. The effective tax rates for those periods
were 35.5% and 32.7%. The effective tax rates are expected to be approximately
35% in the future. The increase in effective tax rate is due to Citizens
Corporation being an "S" Corporation at the time of its merger into Spectrum in
August 2000. Its merger into a "C" Corporation provided a reduction in federal
income tax for the quarter ended September 30, 2000.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

     Asset/liability management refers to management's efforts to minimize
fluctuations in net interest income caused by interest rate changes. This is
accomplished by managing the repricing of interest rate sensitive
interest-earning assets and interest-bearing liabilities. Controlling the
maturity or repricing of an institution's liabilities and assets in order to
minimize interest rate risk is commonly referred to as gap management. Close
matching of the repricing of assets and liabilities will normally result in
little change in net interest income when interest rates change. A mismatched
gap position will normally result in changes in net interest income as interest
rates change.

     Management regularly monitors the interest sensitivity position and
considers this position in its decisions with regard to the Company's interest
rates and maturities for interest-earning assets acquired and interest-bearing
liabilities accepted.

     There has not been a material change in the interest rate sensitivity of
the Company during the six months ended December 31, 2001.


                                                                              12
<Page>

                                    PART II
                               OTHER INFORMATION

ITEM 1:   LEGAL PROCEEDINGS

     Legal Proceedings

     Spectrum and its subsidiary banks are from time to time parties to various
legal actions arising in the normal course of business. Management of Spectrum
believes there is no proceeding threatened or pending against Spectrum or its
subsidiary banks, which, if determined adversely, would have a material adverse
effect on the financial condition or results of operations of Spectrum.

     On November 21, 2000, certain purported class action members filed an
amended petition in an action then pending in an Iowa district court in Lee
County, Iowa against Thousand Adventures, Inc., also known as TAI, to add as
defendants 18 lenders, including Great Western Bank, with respect to retail
installment sales contracts originated by TAI in connection with its sale of
campground memberships. The amended petition alleges that more than 50,000 class
members purchased campground memberships at a cost ranging from $990 to $10,000
and that TAI assigned the contracts outright or as collateral to the lenders.
The primary claim of the amended petition appears to be that the lenders, as
holders of the installment contracts, are subject to all claims the members had
against TAI, which allegedly include breach of contract and consumer fraud,
among other things. The amended petition seeks rescission of the campground
memberships, an unspecified amount of damages, punitive damages, interest and
attorneys' fees. In July 1997 a default judgment was entered against TAI
certifying that action against it as a class action. TAI is the debtor in a
Chapter 7 bankruptcy proceeding pending in federal bankruptcy court in Iowa.

     On October 19, 2001, in the Iowa District Court in Lee County, Iowa, Great
Western Bank was dismissed as a defendant in the above-described action and was
named as sole defendant in a new proceeding, all pursuant to a pending final
settlement agreement. On October 19, 2001, the Court also gave its preliminary
approval to this pending final settlement agreement. Notice of the pending
settlement agreement was mailed to members of the class, and a hearing to
finally approve the pending settlement agreement was held November 9, 2001, at
which the pending settlement agreement became final. The time for appeal has
expired with no appeal filed. As a result of the final settlement, the amount of
potential claims Great Western Bank will be obligated to pay will not have a
material adverse effect on the financial condition or results of operations of
either Great Western Bank or Spectrum.

ITEM 2:   CHANGES IN SECURITIES AND USE OF PROCEEDS

               None

ITEM 3:   DEFAULTS UPON SENIOR SECURITIES

               None

ITEM 4:   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

               None

ITEM 5:   OTHER INFORMATION

               None

ITEM 6:   EXHIBITS AND REPORTS ON FORM 8-K

               None


                                                                              13
<Page>

                                   SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

                                        SPECTRUM BANCORPORATION, INC.

Date: February 1, 2002                  By:  /s/ Deryl F. Hamann
                                             -----------------------------------
                                             Deryl F. Hamann, Chairman and Chief
                                             Executive Officer

                                        (Duly Authorized Representative)

(Authorized officer and principal financial officer of the registrant)

Date: February 1, 2002                  By:  /s/ James R. Clark
                                             -----------------------------------
                                             James R. Clark, CFO, Secretary
                                             and Treasurer


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