Bank Financial Statements

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Bank FinancialStatements
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Bank Financial Statements

• Gup and Kolari Chp. 3
• Statements End Yr. 1 Qtr. 4

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Balance Sheet
Production/ Financial
Service Firm Services
ASSETS ASSETS
Cash Small Cash Small
Accts. Rec. Medium Investments Medium
Inventory Medium Loans LARGE
Fixed Assets Large Premises Small
Liabs/OE Liabs/OE
Accts. Pay. Medium Deposits Large
L/T Debt Large Savings Large
Owner's Eq Large Other Borrgs Medium Other Borrgs Medium
Capital Tiny
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Income Statement
Production/ Svc. Financial Services
Sales Total Interest Income
- COGS - Total Interest Expense
Gross Margin Net Interest Income
- Optg Exp Non-Interest Income
EBIT - Non-Interest Expense
- Interest Exp - Provision for Loan Losses
EBT Pre-tax Optg Income
- Tax /- Securities Gains/Losses
Net Income - Income Taxes
/- Extraordinary Items
Net Income
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FDIC Database of Finl Stmts.

• http//www.fdic.gov/bank/statistical/index.html
• Click on Institution Directory
• Click on Find Institution
• EDGARSCAN http//edgarscan.pwcglobal.com/servlet
  s/edgarscan
• Benchmarking Assistant

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First off.

• Lets understand what weve been given before we
  even think about where were going..
• Lets concentrate on the statement in your
  packet Yr. 1 Qtr. 4

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Income Statement Y1Q4
Operating Income 1.4 1.3
Interest income
Loans and mortgages 87.529 85.224
Securities 18.511 15.199
Federal funds sold 0.000 1.648
Total interest income 106.040 102.071
Service charge income 4.619 4.41
Fees and other income 21.224 21.058
Gross operating income 131.882 127.538
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Income Statement Y1Q4
Operating Expenses
Salaries and benefits 16.777 16.473
Interest expenses
Interest on deposits 56.849 54.249
Interest on capital notes 0.909 0.923
FRB and fed fund borrowing 1.147 0.000
Total interest paid 58.905 55.173

Provision for loan losses 7.279 7.224
Occupancy expense 4.044 3.937
Business development 3.100 3.000
Other expenses 22.503 22.188
Total operating expenses 112.608 107.994
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Income Statement Y1Q4
Gross operating income 131.882 127.538
Total operating expenses 112.608 107.994

Income before taxes and securities 19.274 19.545
Applicable taxes 6.268 6.794
Gain on securities/loans
(after taxes of .349 1.452) 0.378 1.573
Net income 13.384 14.324
Dividend declared 3.3 3.3
Increase in equity 10.084 11.024
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Balance Sheet
Assets 1.4 1.3
Cash and due from banks 359.254 375.696
Federal funds sold 0.000 88.776
Investment securities
Treasury bills 260.000 204.345
U.S. Government notes 384.892 320.024
State and muni securities 406.290 356.099
Total securities 1051.182 880.468
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Balance Sheet
1.4 1.3
Loans and mortgages 3472.557 3444.479
(less provision for loan losses) 22.951 22.683
Bank premises
less depreciation (26.030 24.559) less depreciation (26.030 24.559)
26.921 26.185
Other assets 10.457 10.77
Total assets 4897.419 4803.693
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Balance Sheet
Liabilities and equities 1.4 1.3
Demand deposits 1551.705 1588.917
Time deposits 2951.798 2883.289
Total deposits 4503.503 4472.206

Federal funds purchased 54.933 0.000
Funds borrowed from FRB 0.000 0.000
Dividend payable 3.300 3.300
Accrued taxes 7.791 9.399
Other liabilities 39.570 39.440
Total liabilities 4609.097 4524.345
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Balance Sheet
Capital notes and equity 1.4 1.3
Capital notes 38.457 39.077
Common stock (10.00 par 30 30
Issued3.000 3.000 million)
Surplus 48.519 48.519
Retained Earnings 171.346 161.752
Total equity 249.865 240.271
Total liability capital 4897.419 4803.693

Total qualifying capital 299.797 290.689
FRB capital adequacy ratio 0.967 0.941
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Analysis 1 Spread

• Spread NII / Assets 4 (Roughly)
• NII 106.040 58.905 47.135 (Net Interest
  Income Total Interest
  Income Total Interest Expense)
• Spread 47.135 / 4897.419 4 3.84

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Observations about Y1Q4

• Interest income up, but expenses up more so
  overall net was down from Y1Q3.
• Quick review shows Fed Fund sales (income) became
  Fed Fund borrowing (expense), although there was
  added income from securities investment.