INCOME STATEMENT ANALYSIS:

1) NET INTEREST INCOME Identify in dollars the amount of NET interest income which is:

INTEREST INCOME INTEREST EXPENSE PROVISION FOR LOAN LOSSES.

Then, divide this number by INTEREST INCOME.

2) EXTRAORDINARY ITEMS Identify on dollars and divide by TOTAL INCOME, which is :

GROSS INTEREST INCOME + GROSS NON-INTEREST INCOME

RETURN ON EQUITY ANALYSIS:

1) ROE: NET INCOME TOTAL STOCKHOLDERS EQUITY

2) ROA: NET INCOME TOTAL ASSETS

3) EQUITY MULTIPLIER: TOTAL ASSETS TOTAL EQUITY

4) NET PROFIT MARGIN: NET INCOME TOTAL OPERATING INCOME where TOTAL OPERATING INCOME = INTEREST INCOME + NON-INTEREST INCOME

5) ASSET UTILIZATION: TOTAL OPERATING INCOME TOTAL ASSETS

PROFIT MARGIN ANALYSIS:

1) % INTEREST INCOME: INTEREST INCOME TOTAL OPERATING INCOME

2) UNDERWRITING EFFECTIVENESS: PROVISION FOR LOAN LOSS TOTAL OPERATING INCOME

3) OPERATING MARGIN: NON-INTEREST EXPENSE TOTAL OPERATING INCOME

4) TAX BURDEN: INCOME TAXES PAID TOTAL OPERATING INCOME

ASSET UTILIZATION ANALYSIS:

1) LOAN EFFICIENCY: INTEREST INCOME TOTAL ASSETS

2) OPERATION EFFICIENCY: NON-INTEREST INCOME TOTAL ASSETS