Bank Analysis School Case Study eBook
Sunny State Bank
EARNINGS - NONINTEREST INCOME
% Avg. Assets
Noninterest Income/Average Assets
0.76% 0.75%
0.72%
0.70%
(All)
0.68%
20X9Q2
0.64%
Metrics
0.60%
20X9Q3
0.60%
Bank State All Banks
20X9Q4
0.56%
0.53%
20X0Q1
0.52%
0.50%
20X0Q2
0.48%
0.46%
0.46%
20X0Q3
20X9Q4
20X0Q4
20X1Q4
20X2Q4
20X3Q4
20X4Q4
20X5Q4
Amounts
Noninterest Income Amounts
20X5
Year
2017
120K
(All)
100K
20X9Q2
Metrics
80K
20X9Q3
Other Inv. Advisory/Insurance/Trust Deposit Service Charges Mortgage Banking
60K
20X9Q4
20X0Q1
40K
20X0Q2
20K
20X0Q3
0
20X0Q4
20X4Q1
20X4Q2
20X4Q3
20X4Q4
20X5Q1
20X5Q2
20X5Q3
20X5Q4
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 refnance.
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