Attach a spreadsheet that breaks-down the ROE for your bank as compared to others.

92 Chapter 3 Ana EXHIBIT 3.6 Decomposition of Return on Equity: The Nature of Bank Profits Interest Expense TA Cost of each liab. Int. exp. on liab. j/S amt. of liab. Composition of liab. $ amount of liab. j/aTA Vol. of interest-bearing liab. Tot. Int.-bearing liabilities/aTA Expense Ratio Total Expenses aTA Noninterest Expense ATA Salaries and empl. benefits/aTA Occupancy expenses/aTA Other expenses/ATA Return on Equity Net Income ATE Return on Assets Net Income a'TA Provisions for Loan losses aTA Tax Ratio Income Taxes TA Equity Multiplier aTA a TE Interest Income ATA Yield on each asset Int. inc. on asset i/$ amt, of asset i Composition of assets $ amount of asset i/aTA Volume of earning assets Total earning assets/aTA Asset Utilization Total Revenue aTA Fiduciary Income/aTA Noninterest Income ATA Service Charges and fees/ATA Trading Revenue/TA Other Noninterest income/aTA Note: TA = average total assets and aTE = average total equity. 12:05 D leesmcrae.brightspace.com Bank President Version 3.00 Game Title: F20 (C) 2001 Lewis Lee Corporat Quarter 6 Rates Checking Deposits Savings Deposits 1 Year TDs 5 Year TDs 6 Month CDs Commercial Loans Consumer Loans Home Equity Loans Fixed RE Loans Variable RE Loans Home Equity Fees Kazak Mo' Mo Aussi AT Ba New W MZ Fi hstan ney e nk aters nance --------- 1.30 1.55 2.04 1.40 1.45 1.70 5.07 5.40 6.07 5.00 5.00 4.93 6.05 5.82 5.75 5.73 5.90 5.80 7.20 7.40 7.10 7.20 7.40 7.10 6.10 6.15 6.10 6.11 6.20 6.30 7.16 7.20 9.00 7.70 8.00 7.80 12.20 12.20 13.00 12.80 13.00 12.90 9.55 9.75 3.00 9.80 10.00 9.67 8.70 8.70 8.00 8.80 9.00 8.90 6.35 6.20 7.00 6.30 6.50 6.30 1.20 1.00 3.00 1.10 1.04 1.00 Assets Cash Fed Funds Sold Securities Commercial Loans Consumer Loans Home Equity Loans RE Loans Premises Total Assets 76 34 118 460 86 108 241 16 1139 75 48 101 395 78 103 313 16 1129 122 354 600 197 83 112 56 16 1540 72 121 119 300 76 102 270 15 1075 65 183 49 273 73 103 276 16 1038 72 133 121 336 75 101 316 15 1169 Liab & Equity checking Deposits Savings Deposits Time Deposits CDs Fed Funds Purch FRB Borrowing Capital Notes Equity 336 240 259 244 0 0 13 47 330 239 249 245 0 0 8 58 532 393 263 271 0 0 29 52 319 217 240 249 0 0 8 42 288 197 242 237 0 0 0 19 55 320 209 241 327 0 0 10 62 Income Interest Revenue Interest Expense Fee Income Salaries Advertising Technology Occupancy Loan Losses Taxes capital Gains Net Income 21.4 22.0 25.8 20.5 20.4 22.5 -13.3 -13.5 -18.6 -12.6 -12.4 -14.1 2.2 2.0 2.5 1.8 1.7 1.9 -5.1 -4.8 -5.0 -5.0 -5.0 -4.9 -2.0 -1.9 - 6.0 -1.7 -1.0 -1.6 -1.8 -1.8 - 2.7 -1.8 -1.0 -1.8 -1.0 -1.0 -1.0 -0.9 -1.0 -0.9 -1.8 -1.7 -1.3 -1.5 -1.5 -1.7 0.7 0.3 3.1 0.5 -0.1 0.3 0.0 1.1 -0.1 0.1 0.5 0.0 -0.7 0.7 - 3.3 -0.5 0.6 -0.3 Performance Capital Adequacy EPS Dividend Stock Price 1.05 -0.3 0.1 13.5 1.17 1.05 0.2 -1.1 0.1 0.3 14.5 12.7 0.93 -0.2 0.2 14.6 1.43 0.2 0.6 13.8 1.23 -0.1 0.2 12.5 92 Chapter 3 Ana EXHIBIT 3.6 Decomposition of Return on Equity: The Nature of Bank Profits Interest Expense TA Cost of each liab. Int. exp. on liab. j/S amt. of liab. Composition of liab. $ amount of liab. j/aTA Vol. of interest-bearing liab. Tot. Int.-bearing liabilities/aTA Expense Ratio Total Expenses aTA Noninterest Expense ATA Salaries and empl. benefits/aTA Occupancy expenses/aTA Other expenses/ATA Return on Equity Net Income ATE Return on Assets Net Income a'TA Provisions for Loan losses aTA Tax Ratio Income Taxes TA Equity Multiplier aTA a TE Interest Income ATA Yield on each asset Int. inc. on asset i/$ amt, of asset i Composition of assets $ amount of asset i/aTA Volume of earning assets Total earning assets/aTA Asset Utilization Total Revenue aTA Fiduciary Income/aTA Noninterest Income ATA Service Charges and fees/ATA Trading Revenue/TA Other Noninterest income/aTA Note: TA = average total assets and aTE = average total equity. 12:05 D leesmcrae.brightspace.com Bank President Version 3.00 Game Title: F20 (C) 2001 Lewis Lee Corporat Quarter 6 Rates Checking Deposits Savings Deposits 1 Year TDs 5 Year TDs 6 Month CDs Commercial Loans Consumer Loans Home Equity Loans Fixed RE Loans Variable RE Loans Home Equity Fees Kazak Mo' Mo Aussi AT Ba New W MZ Fi hstan ney e nk aters nance --------- 1.30 1.55 2.04 1.40 1.45 1.70 5.07 5.40 6.07 5.00 5.00 4.93 6.05 5.82 5.75 5.73 5.90 5.80 7.20 7.40 7.10 7.20 7.40 7.10 6.10 6.15 6.10 6.11 6.20 6.30 7.16 7.20 9.00 7.70 8.00 7.80 12.20 12.20 13.00 12.80 13.00 12.90 9.55 9.75 3.00 9.80 10.00 9.67 8.70 8.70 8.00 8.80 9.00 8.90 6.35 6.20 7.00 6.30 6.50 6.30 1.20 1.00 3.00 1.10 1.04 1.00 Assets Cash Fed Funds Sold Securities Commercial Loans Consumer Loans Home Equity Loans RE Loans Premises Total Assets 76 34 118 460 86 108 241 16 1139 75 48 101 395 78 103 313 16 1129 122 354 600 197 83 112 56 16 1540 72 121 119 300 76 102 270 15 1075 65 183 49 273 73 103 276 16 1038 72 133 121 336 75 101 316 15 1169 Liab & Equity checking Deposits Savings Deposits Time Deposits CDs Fed Funds Purch FRB Borrowing Capital Notes Equity 336 240 259 244 0 0 13 47 330 239 249 245 0 0 8 58 532 393 263 271 0 0 29 52 319 217 240 249 0 0 8 42 288 197 242 237 0 0 0 19 55 320 209 241 327 0 0 10 62 Income Interest Revenue Interest Expense Fee Income Salaries Advertising Technology Occupancy Loan Losses Taxes capital Gains Net Income 21.4 22.0 25.8 20.5 20.4 22.5 -13.3 -13.5 -18.6 -12.6 -12.4 -14.1 2.2 2.0 2.5 1.8 1.7 1.9 -5.1 -4.8 -5.0 -5.0 -5.0 -4.9 -2.0 -1.9 - 6.0 -1.7 -1.0 -1.6 -1.8 -1.8 - 2.7 -1.8 -1.0 -1.8 -1.0 -1.0 -1.0 -0.9 -1.0 -0.9 -1.8 -1.7 -1.3 -1.5 -1.5 -1.7 0.7 0.3 3.1 0.5 -0.1 0.3 0.0 1.1 -0.1 0.1 0.5 0.0 -0.7 0.7 - 3.3 -0.5 0.6 -0.3 Performance Capital Adequacy EPS Dividend Stock Price 1.05 -0.3 0.1 13.5 1.17 1.05 0.2 -1.1 0.1 0.3 14.5 12.7 0.93 -0.2 0.2 14.6 1.43 0.2 0.6 13.8 1.23 -0.1 0.2 12.5