Bank Analysis School - September 2023

Internal Use Only

Advice for Evaluating Noninterest Income

1. Determine the sources of noninterest income (UBPR Page 3 and/or general ledger)

2. Consider volatility and future prospects

3. Consider the relationship to overhead costs (Overhead Less Noninterest Income Ratio on UBPR Page 3)

Internal Use Only

Earnings

Asset Quality Problems

• Provisions • Collection Expenses (legal fees, extra staff) • Nonearning Assets (nonaccrual loans, OREO)