Capital Markets School - Case Study

2022 BUDGET

INCOME STATEMENT

MARGIN ANALYSIS

ACTUAL

Projected

Actual 2021

Projected

2021

2022

2022

Interest Income Interest on Loans Fees on Loans

Earning Assets Interest on Loans Fees on Loans

17,329,816 3,474,926 20,213 23,354 176,487 4,081,793 805,544 25,912,132

19,417,575 1,361,045

4.28% 4.28% 0.86% 0.30% 0.24% 0.25% 0.22% 0.25% 1.58% 1.50% 3.64% 2.55% 3.34% 3.01% 2.06% - 0.36% 0.45% 0.26% 0.26% 0.57% 0.75% 0.72% 0.75% 0.54% 0.65% 0.40% 0.48% 2.94% 2.53% 0.30% 0.36% 3.05% 2.66% - - - -

Mortgage Loans Held For Sale Interest on federal funds sold Interest on deposits with banks Investment Securities - Taxable Investment Securities - Tax-exempt

-

125

Mortgage Loans Held For Sale Interest on federal funds sold Interest on deposits with banks Investment Securities - Taxable Investment Securities - Tax-exempt

58,612

6,285,484 857,533 27,980,374

Total Interest Income

Earning Assets Yield

Interest Expense

Interest Bearing Liabilities Interest bearing demand deposits Savings and Money Market Deposits

Interest bearing demand deposits Savings and Money Market Deposits Time Deposits - Retail Time Deposits - Wholesale Interest on other borrowings Trust Preferred Securities Total Interest Expense Net Interest Income Provision for loan losses Non-interest Income Service charges and fees Brokerage Revenue Securities gains (losses), net Mortgage loan and related fees SBA loan and related fees Other noninterest income Total Non-interest Income FHLB Advances Net Interest Income After Loan Losses

1,007,826 324,108 597,163

1,575,888 404,640 789,991

Time Deposits - Retail Time Deposits - Wholesale Interest on other borrowings Trust Preferred Securities FHLB Advances

-

-

168,735 144,867

262,500 177,581

-

-

Cost of Interest Bearing Liabilities Net Interest Rate Spread

2,242,699 23,669,433 1,836,334

3,210,600 24,769,774

29,508

21,833,099 24,740,265 Cost of Funds

Net Interest Margin

1,173,002 139,978

1,200,000 300,000

-

-

535,015

450,000

-

-

3,677,327 5,525,321

1,500,000 3,450,000

Non-interest Expense Salaries and employee benefits Other noninterest expense Total Non-interest expense Occupancy

9,933,327 1,997,941 7,108,261 19,039,530 8,318,890 833,244 7,485,646

10,500,000 2,000,000 6,500,000 19,000,000 9,190,265 919,027 8,271,239

Income Before Taxes

Income taxes Net Income