BAS Case Study - March 2023

Sunny State Bank

EARNINGS - NONINTEREST INCOME

%Avg. Assets

Noninterest Income/Average Assets

0.72%

0.70%

0.68%

(All)

0.64%

2013Q4

0.60%

Metrics

0.60%

2014Q1

Bank State All Banks

0.56%

2014Q2

0.53%

0.52%

2014Q3

0.50%

2014Q4

0.48%

0.46%

0.46%

2015Q1

2013Q4

2014Q4

2015Q4

2016Q4

2017Q4

2018Q4

Amounts

Noninterest Income Amounts

Year

2014

2015

2016

2017

2018

240K

(All)

200K

2013Q4

160K

Metrics

2014Q1

Other Inv. Advisory/Insurance/Trust Deposit Service Charges Mortgage Banking

120K

2014Q2

80K

2014Q3

40K

2014Q4

0

2015Q1

2015Q2

2014Q1

2014Q2

2014Q3

2014Q4

2015Q1

2015Q2

2015Q3

2015Q4

2016Q1

2016Q2

2016Q3

2016Q4

2017Q1

2017Q2

2017Q3

2017Q4

2018Q1

2018Q2

2018Q3

2018Q4

Noninterest income is largely of a fee nature and may include: deposit service charges, mortgage banking income from selling and/or servicing residential real estate loans, trust department income, investment advisory fees, and insurance commissions. The pie chart above shows the main sources of noninterest income for the selected bank, and page 3 of the UBPR includes a more detailed breakout of amounts. "Other Noninterest Income" may include items such as debit card interchange income, increases in the value of bank-owned life insurance, and other miscellaneous income. Noninterest income is relied upon more heavily in some banks than others. The level of noninterest income will depend on if a particular bank is engaged in activities that generate these sources of income. Keep in mind that it's not uncommon for the level of noninterest income to be volatile. For example, banks may see a surge in income from secondary market loan sales when interest rates decline and homeowners refinance.