Credit Evaluation School Instructor eBook - Oct 2023

9/19/2023

Internal Use Only

Bank 2

Capital • Tier 1 Leverage Ratio – 10.15% Asset Quality • Loan to Assets 75.3% • ACI Ratio – 34.1% • Prior Exam – 23.3% • Total Loans 90+ days past due or nonaccrual – 1.7%

Management • No violations related to loan review Earnings • ROAA – 0.44%

• State Average this exam – 13.5%

3

Internal Use Only

Capital • Tier 1 Leverage Capital – 8.65% Asset Quality • ACI Ratio – 31.5% • Prior exam – 19.4% • Internal bank classification – 4.2% • CRE concentration of 322% • Monitoring of concentration needs improvement • ACL to Total Loans – 0.65% Bank 3

Management • Multiple legal lending limit violations cited • Third consecutive examination of LLL violations Earnings • ROAA – 0.6%

4

2