Risk Management Manual of Examination Policies - FDIC

FUTURE EARNINGS PROSPECTS (Continued)
ESTIMATED INCOME AND EXPENSES
ESTIMATED AMOUNT
DESCRIPTION FIRST YEAR SECOND YEAR THIRD YEAR
Interest Income
Real Estate loans 2,542 5,287 8,178
Installment loans
Credit Card loans
98 332 728
Commercial and all other loans
Lease financing receivables
Balances due from depository institutions
Taxable securities issued by states and political subdivisions
Tax-exempt securities issued by states and political subdivisions
614 1,611 2,758
U.S. Government and other debt securities
Other securities
Federal Funds sold and securities purchased under agreements to resell
954 2,683 2,556
Total Interest Income 4,208 9,913 14,220
Interest Expense
Transaction accounts (NOW, etc.) 60 175 242
Time Deposits of less than $100,000 448 1,307 1,831
Time Deposits of $100,000 or more 192 560 784
Money Market deposit accounts 432 1,245 1,752
Other savings deposits
Federal Funds purchased and other borrowings
33 95 133
Total Interest Expense 1,165 3,382 4,742
Net Interest Income (NII) 3,043 6,531 9,478
NII % of Average Earning Assets 3.94% 4.41% 4.70%
Provision for Loan and Lease Losses 836 797 918
Non-interest Income
Non-interest Expense
291 796 1,112
Salaries and Benefits
Net Occupancy Expenses
Other Operating expenses:
Advertising and Marketing
Professional Services (legal, accounting, etc)
Computer Services/Data Processing
Miscellaneous
7,027 8,103 8,779
Net organization expenses (1 st year only) 3,900
Total Non-interest Expense (NIE) 10,927 8,103 8,779
NIE % of Average Assets 14.14% 5.47% 4.35%
Income (Loss) before Income Taxes
Income Tax Expense
(8,429) (1,573) 893
Net Income (NI) (8,429) (1,573) 893
NI % of Average Assets (10.91)% (1.06)% 0.44%
Average Assets
Explain examiner adjustments made to applicant’s projections.
77,277 148,135 201,602
FDIC 6510/10 (02-2002) 17