Risk Management Manual of Examination Policies - FDIC

Analysis of Earnings 99999
Comparative Statement of Income
Period Ended Period Ended Period Ended
06/30/2004 12/31/2003 12/31/2002
Interest Income 2,519 5,582 7,329
Interest Expense 894 2,452 3,850
Net Interest Income 1,625 3,130 3,479
Noninterest Income 304 589 643
Total Noninterest Expense 1,467 2,902 2,904
Provision for Loan and Lease Losses 300 1,025 1,580
Securities Gains (Losses) 15 48
Net Operating Income (Pre-Tax) 177 (160) (362)
Applicable Income Taxes 74 (36) (117)
Net Operating Income (After-Tax) 103 (124) (245)
Extraordinary Credits (Charges), Net
Net Income 103 (124) (245)
Other Increases/Decreases 60
Includes changes in the net unrealized holding gains (losses) on Available-For-
Sale Securities
Cash Dividends
Net Change in Equity Accounts 163 (124) (245)
Reconcilement of Allowance for Loan and Lease Losses
Period Ended Period Ended Period Ended
06/30/2004 12/31/2003 12/31/2002
Beginning Balance 1,748 1,407 950
Gross Loan and Lease Losses 181 884 1,274
Recoveries 112 200 151
Provision for Loan and Lease Losses 300 1,025 1,580
Other Increases (Decreases)
Ending Balance 1,979 1,748 1,407
Other Component Ratios and Trends
Ratio Period Ended Period Ended Period Ended
06/30/2004 12/31/2003 12/31/2002
Net Interest Income (TE)/Average Earning Assets 4.74 4.37 4.64
Total Noninterest Expense/Average Assets 3.82 3.62 3.54
Net Income/Average Total Equity 3.39 (2.05) (3.87)
Net Losses/Average Total Loans and Leases .025 1.24 1.88
Earnings Coverage of Net Losses (X) 6.70 (1.19) (1.08)
ALLL/Total Loans and Leases 3.67 3.15 2.50
Noncurrent Loans and Leases/ALLL 106.47 143.88 100.64
Footnotes:
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