BAS Presentations - March 2023

UBPR RATIO FLOW CHART FOR EARNINGS ANALYSIS

Return on Average Assets (ROAA) [page 1]

Noninterest Income to Average Assets [page 1]

Provision Expenses to Average Assets [page 1]

Net Interest Margin (NIM) [page 1]

Securities Gains/Losses to Average Assets [page 1]

Noninterest Expenses to Average Assets [page 1]

Provision Amounts [page 2]

Securities Gains/Losses Amounts [page 2]

Yield on Earning Assets [page 1] Int. Exp. To Avg. Earning Assets [page 1] Loans to Assets [page 1] Yield on Loans [page 3] Yield on Securities [page 3] Cost of Funds [page 3]

Noninterest Income Amounts [page 3]:

Personnel Expense to Average Assets [page 3] Occupancy Expense to Average Assets [page 3] Other Operating Expenses to Average Assets [page 3]

Fiduciary Activities Deposit Service Charges Insurance Commissions/Fees Net Servicing Fees Gains/Losses on Loans/Leases Other Noninterest Income

ANALYSIS TIPS:  Consider level, trend, and why  Adjust for nonrecurring items  Be selective with peer comparisons  Consider seasonality when reviewing mid ‐ year numbers  Consider competitive environment and strategic initiatives  Consult source data (general and subsidiary ledgers, inventory reports)  UBPR User’s Guide shows how ratios are calculated

Noninterest Expense Amounts [page 3]

Efficiency Ratio [page 3]

Average Earning Assets to Average Assets [page 1]

Items which may contribute to a higher level of nonearning assets:

Cash and Due [page 4] Nonaccrual Loans [page 8] OREO [page 4] Premises/Fixed Assets [page 4]

Average Interest ‐ Bearing Funds to Average Assets [page 1]

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