Bank Analysis School Case Study

Sunny State Bank

CALCULATIONS - EARNINGS

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Formula

17. Earnings - ROAA & ROE

Return on Average Assets Adj. Sub S

Net Income Adjusted Sub S % Average Assets (UBPRE012)

Return on Equity

Net Income % Average Total Equity (UBPRE630)

18. Earnings - Net Income

Net Income (Quarterly) Net Income (Yearly)

Net Income (UBPR4340) Net Income (UBPR4340)

19. Earnings - NIM, Asset Yields, COF Cost of Funds

Interest Expense % Average Earning Assets (UBPRE679) Net Interest Income TE % Average Earning Assets (UBPRE680) Interest Income TE % Average Earning Assets (UBPRE678) Total Loans & Leases TE % Yield On Or Cost Of (UBPRE686) Total Investment Securities TE % Yield On Or Cost Of (UBPRE694)

Net Interest Margin

Yield on Assets Yield on Loans

20. Earnings - Asset Yields

Yield on Securities Noninterest Income Amounts

21. Earnings - Noninterest Income Ratio & Sources

Mortgage Banking = Net Gains (Losses) on Sales of Loans, Net Servicing Fees (RIAD5416+RIADB492) Deposit Service Charges = Service Charges On Deposit Accounts In Domestic Offices (RIAD4080) Inv. Advisory/Insurance/Trust = Income From Fiduciary Activities, Investment Banking; Advisory; Brokerage; and Underwriting Commissions & Fees, Insurance Commissions & Fees (RIAD4070+UBPRB490+UBPRE080) Other = Other Noninterest Income, Other Net Gains (Losses), Trading Revenue % Noninterest Income; Current Quarter (RIADB497+UBPRE081+UBPR7452)

Noninterest Income/Average Assets

Noninterest Income % Average Assets (UBPRE004)

22. Earnings - Overhead Ratios

Efficiency Ratio

Efficiency Ratio (UBPRE088)

Overhead Costs Less Noninterest Income/Average Assets Overhead/Average Assets Occupancy Expenses/Average Assets Other Operating Expenses/Average Assets Personnel Expenses/Average Assets Provisions/Average Assets Realized Bond Gains/Losses to Average Assets

Overhead Less Noninterest Income % Average Assets (UBPRE087)

Non-Interest Overhead Expense % Average Assets (UBPRE005)

23. Earnings - Personnel, Occupancy, Other Operating Expense Ratios

Occupancy Expense % Average Assets (UBPRE084)

Other Operating Expenses (Incl Intangibles) % Average Assets (UBPRE085)

Salary Expense % Average Assets (UBPR7400)

24. Earnings - Provisions & Bond Gains

Provision for Loan & Lease Losses % Average Assets (UBPRE006)

Realized Gains (Losses) on the Sale of Securities % Average Assets (UBPRE008)