Bank Analysis School Case Study

UBPR EARNINGS RATIO FLOW CHART

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) [pages 1 & 12]

Realized 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]

Ratios/Amounts: [page 3]: Personnel Expense Occupancy Expense Other Operating Expense

Yield on Earning Assets [pages 1 & 12] Int. Exp. To Avg. Earning Assets [pages 1 & 12] Loans to Assets [page 1] Yield on Loans [pages 3a & 12] Yield on Securities [pages 3a & 12] Cost of Funds [pages 3a & 12]

Ratios/Amounts [page 3]:

Fiduciary Activities Deposit Service Charges Securities Brokerage Insurance Commissions/Fees Net Servicing Fees Gains on Loan sales Other Noninterest Income

ANALYSIS TIPS:  Consider level, trend, and why  Adjust for non-recurring items

Efficiency Ratio [page 3]

 Be selective with peer comparisons  Consider seasonality when reviewing mid-year figures  Consider competitive environment and strategic initiatives  Consult source data (general ledger)  UBPR User’s Guide shows how ratios are calculated

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 Earning Assets to Average Assets [page 1]

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