Examiner-in-Charge School

Internal Use Only

Internal Use Only

Management - 2 The bank’s management and the bank’s board is rated a 2. In addition, oversight remains strong. Despite tightening liquidity and capital positions the overall financial condition remains satisfactory and risk management practices are good given the risk profile of the institution. The bank’s board and the bank’s committee meetings are well attended; however, enhancements to Asset Liability Committee (ALCO) minutes and audit committee oversight are noted below. The bank’s strategic planning process is formal with XYZ and Associates, Inc. engaged to aid in the most recent plan. Earnings are satisfactory with net income totaling $1,245,642, an ROAA of 0.48% and a NIM of 3.12%, both aligned with the peer group levels. Capital, as noted has tightened with a leverage ratio of 7.07 percent. This is due to capital levels declining by $1.3 million since the prior examination. Additionally, we believe the audit and internal control environment is sound and prior examination findings have been appropriately addressed. Findings detailed below warrant attention.