Bank Accounting Statements - review terminology and format

Should print out the following reports to aid in the discussion

Financial Statements, Sample Bank

• Balance Sheet - definitions included
• Income Statement - definitions included
• Loan Schedule - definitions included
• Non-performing loan schedule
• Deposit Schedule - definitions included
• Securities Schedule - definitions included
• Charge-offs and Recoveries Schedule
• Change in Equity Capital
• Change in Allowance for Loan Loss

Analysis Tools

Common Size Analysis

• All BS items divided by total assets
• All IS items divided by gross income (Interest income + noninterest income)
• All IS items divided by average earning assets

Trend statements

• All items represented on a base year

Component Analysis

• loan categories to total loans
• deposit categories to total deposits

Examples for Sample bank

• Common Size Balance Sheet
• Common Size Income Statement
• Trend Analysis
• Loan Component Analysis
• Deposit Component Analysis
• Ratio analysis - definitions included
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