5. Viking Bank in Minnesota has the following Earnings and Profitability Analysis

section on its Uniform Bank Performance Report for 2020 and 2019.

OROA Analysis: Profitability Analysis: % of Average Earning Assets

12/31/2020 12/31/2019

Bank PG1 Bank PG1

IR% 4.54 3.47 4.48 3.33

IE% 1.17 0.92 0.91 0.70

NIM% 3.36 2.54 3.57 2.61

NIR% 2.04 1.56 2.11 1.63

NIE% 3.87 2.47 3.88 2.52

Burden% 1.83 0.91 1.77 0.89

PLL% 0.52 0.21 0.44 0.16

OROA% 1.00 1.47 1.35 1.62

Tier1Capital Equity/Assets% 9.24 9.56 9.08 9.56

Part 1: OROA Trend & Peer Comparison Analysis:

1. Do a Bank OROA Analysis based on trends in the NIM, Burden, and PLL% and explain why the Banks OROA went down in 2020. Using the trends in the IR% and IE% explain why the NIM went down, and what kind of funding gap the Bank likely had. Also explain why the Burden % went up in 2020 based on the trends in the NIR% and NIE%