UBPR HELP!

Link:

https://cdr.ffiec.gov/public/Reports/UbprReport.aspx?rptCycleIds=101%2c86%2c81%2c76%2c72&rptid=283&idrssd=3118447&peerGroupType=&supplemental=

Analyzing Profitability Worksheet

Use 2016 Year-End Data for First Community Bank from the banks UBPR

to interpret the following ratios (FDIC Cert. #34047)

Overview:

Use average balance sheet data and periodic flow income statement data to calculate ratios.

Always compare ratios over time to capture trends and relative to peer institutions at the

same point in time to assess the relative level of performance.

Note: You do not have to calculate most of the following ratios but can obtain them directly from the UBPR.

A. Return on Equity (ROE) Decomposition

ROE = ROA x EM

1. ROE = Net income / EQ = _____________

2. ROA = Net income / TA = _____________

3. EM = TA / EQ = _____________

B. Return on Asset (ROA) Decomposition

ROA = AU - ER - TAX

1. AU = Total Revenue / TA = _____________

2. ER = Total Operating Expense / TA = _______________

3. TAX = Taxes / TA = _____________

AU = ( Interest income / TA ) + ( Non-interest income / TA ) + ( Securities Gains / TA )

4. Interest income / TA = _____________

5. Non-interest income / TA = _____________

6. Securities gains/losses / TA = ______________

ER = Interest expense/TA + Non-interest expense /TA + Provision for loan losses/TA

7. Interest expense / TA = ______________

8. Non-interest expense / TA = ______________

9. Provision for loan losses / TA = ______________

C. Other Key Profitability Ratios

10. Net interest margin = Interest income / Earning assets - Interest expense / Earning assets

Interest income / Earning assets = ____________

Interest expense / Earning assets = ____________

11. Spread = (Interest income / Earning assets ) - (Interest expense / Interest-bearing liabilities)

Interest expense / Interest-bearing liabilities = _____________

12. Burden = (Non-interest expense - Noninterest income) / Total Assets = _____________

13. Efficiency Ratio = Non-interest expense / ( Net interest income + Non-interest income ) = _____________