Credit Evaluation School - May 2023

Internal Use Only

Analyze AQ - Credit Administration • Level and severity of weaknesses identified. • Promptness of identification, correction, and taking measures for future prevention. • Accuracy of internal risk ratings. • Identifying and taking losses in a timely manner. • Accurate and timely reporting to senior management and Board.

Internal Use Only

Analyze AQ – Key Ratios • Adversely Classified Items Coverage Ratio (Total adversely classified items to Tier 1 Capital & Allowance). • Total LN&LS-90+ Days Past Due and Nonaccrual – UBPR Summary Ratios Page • LN&LS Allowance to Total LN&LS – Summary Ratios Page • Concentrations – Concentrations of Credit Page • Problems Assets – Analysis of Past Due, Nonaccrual, and RTD Pages • Net Loans & Leases to Assets – UBPR Summary Ratios Page • Net Loans & Leases Growth Rate – UBPR Summary Ratios Page • Loan portfolio composition – Balance Sheet and Loan Mix Pages