BAS September 2022 Presentations

Learning Objectives

1 – How Banks Make Money 2 – Income Statement 3 – UBPR Ratio Analysis 4 – Budget 5 – Impact on Capital 6 – Risk vs. Return

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Reconciling Performance Changes

% AVERAGE ASSETS Net Interest Income Noninterest Income Noninterest Expenses

12/31/21 12/31/20 2.41% 2.43% 0.62% 0.72% 1.66% 1.18% 0.03% 0.11% 0.00% 0.00%

EFFECT ‐ 2 bps ‐ 10 bps ‐ 48 bps +8 bps

Provisions

Securities Gains/Losses

none

Pretax Net Operating Income

1.35% 1.86% Net effect  ‐ 52 bps

What is the main reason pretax earnings declined in 2021?

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