BAS Presentations - March 2023

3/1/2023

Earnings

Asset Quality Problems

• Provisions • Collection Expenses (legal fees, extra staff) • Nonearning Assets (nonaccrual loans, OREO)

15

Provisions Decimated Earnings During the Financial Crisis

All Commercial Banks in the U.S.

1.00%

Net Income/ Average Assets

0.80%

0.60%

0.40%

0.20%

Provisions/ Average Assets

16

8