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1234567 SAMPLE BANK HOLDING COMPANY RELATIVE INCOME STATEMENT AND MARGIN ANALYSIS PAGE 3

RICHMOND, VA FR Dist: 05 Peer: 1

mm/dd/yyyy mm/dd/yyyy mm/dd/yyyy mm/dd/yyyy mm/dd/yyyy


PERCENT OF AVERAGE ASSETS BHC PEER 01 PCT BHC PEER 01 PCT BHC PEER 01 PCT BHC PEER 01 BHC PEER 01
------------------------- ----------------- ----------------- ----------------- ------------- -------------
Interest Income (TE) 6.54 6.10 76 6.04 5.57 79 6.42 5.95 72 5.73 5.07 4.88 4.46
Less: Interest Expense 2.64 3.08 20 2.02 2.47 19 2.38 2.85 18 1.63 1.98 1.07 1.32
Equals: Net Interest Income (TE) 3.90 2.99 89 4.02 3.09 89 4.04 3.09 89 4.09 3.08 3.81 3.16
Plus: Non-Interest Income 1.15 1.91 29 1.23 2.00 26 1.25 1.91 31 1.32 2.04 1.39 2.13
Equals: Adj Operating Income (TE) 5.05 4.93 58 5.25 5.05 55 5.29 4.98 62 5.41 5.14 5.20 5.31
Less: Overhead Expense 2.94 3.01 48 3.07 3.04 49 3.01 2.97 53 3.02 3.06 2.99 3.24
Less: Provision for Loan & Lease Losses 0.08 0.17 27 0.14 0.13 56 0.16 0.15 62 0.13 0.15 0.14 0.18
Plus: Realized G/L on HTM Securities 0.00 0.00 49 0.00 0.00 50 0.00 0.00 50 0.00 0.00 0.00 0.00
Plus: Realized G/L on AFS Securities 0.05 0.02 80 0.00 0.00 65 0.01 -0.01 63 0.00 0.01 0.01 0.03
Plus: Other Tax Equiv Adjustments 0.00 0.00 50 0.00 0.00 53 0.95 0.00 98 0.00 0.00 0.00 0.00
Equals: Pretax Net Oper Income (TE) 2.09 1.71 70 2.05 1.87 58 3.07 1.83 92 2.27 1.93 2.09 1.94

Less: Applicable Income Taxes (TE) 0.80 0.59 82 0.76 0.65 67 1.72 0.63 98 0.85 0.67 0.78 0.67
Less: Minority Interest -0.01 0.01 2 0.00 0.01 5 0.03 0.01 86 0.00 0.01 -0.01 0.01
Equals: Net Operating Income 1.29 1.11 60 1.29 1.20 50 1.32 1.18 59 1.43 1.25 1.31 1.26

Plus: Net Extraordinary Items 0.00 0.00 50 0.00 0.00 48 0.00 0.01 46 0.00 0.00 0.00 0.00
Equals: Net Income 1.29 1.11 61 1.29 1.23 49 1.32 1.21 59 1.43 1.26 1.31 1.28
Memo: Net Income (Last Four Qtrs) 1.32 1.16 64 1.40 1.24 64 1.32 1.21 59 1.43 1.26 1.31 1.30

MARGIN ANALYSIS:
Avg Earning Assets / Avg Assets 88.24 90.07 30 87.29 89.81 14 87.82 90.18 20 90.18 89.84 90.04 89.69
Avg Int-Bearing Funds / Avg Assets 66.60 76.23 11 65.38 75.13 11 66.31 75.81 13 66.73 74.48 64.86 73.82
Int Income (TE) / Avg Earning Assets 7.42 6.77 85 6.92 6.20 86 7.31 6.60 86 6.35 5.65 5.42 5.01
Int Expense / Avg Earning Assets 2.99 3.43 20 2.31 2.76 20 2.71 3.16 20 1.81 2.21 1.19 1.48
Net Int Inc (TE) / Avg Earning Assets 4.42 3.33 89 4.60 3.45 94 4.60 3.42 91 4.54 3.44 4.23 3.54

YIELD OR COST:
Total Loans and Leases (TE) 7.71 7.37 70 7.22 6.78 79 7.62 7.24 73 6.72 6.23 5.92 5.48
Interest-Bearing Bank Balances 4.70 5.07 47 4.30 3.83 63 5.14 5.07 56 4.42 3.49 1.47 2.01
Fed Funds Sold & Reverse Repos 5.24 5.31 44 4.57 4.44 73 5.17 5.08 66 3.20 3.24 1.12 1.49
Trading Assets 9.20 3.27 93 6.51 2.85 84 7.73 2.87 96 7.42 2.47 7.02 3.33
Total Earning Assets 7.35 6.70 83 6.85 6.12 88 7.25 6.53 86 6.28 5.58 5.34 4.94

Investment Securities (TE) 5.88 5.23 89 5.65 4.75 92 5.85 4.95 94 5.41 4.42 4.67 4.19
U.S. Treasury & Agency Sec (excl MBS) 5.71 6.82 77 4.45 4.11 68 4.76 4.48 69 3.81 3.64 3.43 3.24
Mortgage-Backed Securities 5.29 4.99 73 4.57 4.53 52 5.41 4.70 89 2.94 4.31 3.21 4.17
All Other Securities 6.38 7.22 52 6.76 7.39 62 6.69 8.27 47 6.72 7.48 5.69 7.01

Interest-Bearing Deposits 3.51 3.55 41 2.60 2.73 40 3.10 3.22 46 1.95 2.13 1.15 1.33
Time Deposits of $100K or More 4.85 4.71 52 3.50 3.89 19 4.25 4.44 34 3.05 3.09 2.27 2.16
Time Deposits < $100K 4.33 4.39 40 3.26 3.45 32 3.74 3.99 31 2.69 2.90 1.92 2.42
Other Domestic Deposits 2.85 2.50 69 2.17 1.88 64 2.57 2.26 63 1.62 1.41 0.96 0.79
Foreign Deposits 4.87 4.46 65 4.10 3.71 60 4.63 4.23 64 3.17 2.79 1.30 1.39

Fed Funds Purchased and Repos 4.74 4.77 41 3.76 4.10 20 4.39 4.53 31 2.70 3.10 1.18 1.47
Other Borrowed Funds & Trading Liab 3.62 4.75 17 3.66 4.04 31 4.20 4.52 33 4.04 3.51 3.27 2.91
All Interest-Bearing Funds 3.96 4.06 44 3.09 3.30 29 3.59 3.77 33 2.45 2.64 1.65 1.82

3-12 BHCPR User’s Guide • March 2007


Relative Income Statement and Margin Analysis
BHCPR page 3 presents the key cumulative preferred stock included Percent of Average Assets
components of earnings relative in minority interest divided by the
to average assets, margin analysis number of reporting quarters (five- Interest Income (TE)
ratios, the yields or returns on specific point average). (Percent of Average Assets)
assets, and the cost of funds. The Total interest income on a taxable
average balance of each category of equivalent basis divided by average
investment securities in the Yield or Average Loans and Leases assets.
Cost section is based on amortized
cost, rather than fair value. For a The cumulative sum of the quar-
terly average loans and leases (net of Interest Expense
description of the methods for cal-
unearned income) for all year-to-date (Percent of Average Assets)
culating average balances, see page
2-2. quarters divided by the number of Total interest expense divided by
calendar quarters to date (four-point average assets.
Definitions of specific average bal- average).
ances used in calculating ratios on
this report page are given below. Net Interest Income (TE)
(Percent of Average Assets)
Average Investment Securities
Net interest income on a taxable
Definitions The cumulative sum of the quarterly equivalent basis divided by average
of Average Balances average consolidated investment assets.
securities for all year-to-date quar-
Average Assets ters divided by the number of cal- Non-Interest Income
endar quarters to date (four-point (Percent of Average Assets)
The cumulative sum of the quarterly average).
average consolidated assets year- Non-interest income divided by
to-date divided by the number of average assets.
calendar quarters to date (four-point Average Interest-Bearing
average). Deposits Adjusted Operating Income (TE)
(Percent of Average Assets)
The cumulative sum of the quarterly
averages for domestic and foreign The sum of net interest income on
Average Earning Assets a taxable equivalent basis and non-
interest-bearing deposits for all
The cumulative sum of the quarterly year-to-date quarters divided by the interest income divided by average
average earning assets year-to-date number of calendar quarters to date assets.
divided by the number of calendar (four-point average).
quarters to date (four-point average). Overhead Expense
Earning assets include investment (Percent of Average Assets)
securities, federal funds sold and Average Other Borrowed Funds The sum of salaries and employee
securities purchased under agree- benefits, expense on premises and
ments to resell, loans and leases (net The cumulative sum of the quarterly
fixed assets, amortization expense
of unearned income), trading assets, averages of all other borrowed funds
of intangible assets, and other non-
and other earning assets as reported for all year-to-date quarters divided
interest expense divided by average
on schedule HC-K of the FR Y-9C. by the number of calendar quarters
assets.
to date (four-point average).
Provision for Loan and Lease Losses
Average Interest-Bearing Funds (Percent of Average Assets)
Other Average Balances
The cumulative sum of the end-of- Provision for loan and lease losses
quarter balances (from the previous Other average balances, which are divided by average assets.
year-end to the latest quarter) of not defined above, are calculated
interest-bearing deposits, federal based on the five-point average Realized Gains (Losses) on
funds purchased and securities sold method. This approach consists of Held-to-Maturity Securities
under agreements to repurchase, dividing the cumulative sum of (Percent of Average Assets)
commercial paper, other borrowed end-of-quarter balances (of the bal-
money, subordinated notes and ance sheet item) from the previous The difference between the sales price
debentures (including equity contract year-end to the latest quarter by the and the amortized cost that is realized
and equity commitment notes) and number of reporting quarters. from the sale, exchange, redemption,

BHCPR User’s Guide • March 2007 3-13


or retirement of securities that are Net Income (Yield on)
classified as held-to-maturity divided (Percent of Average Assets) Interest-Bearing Bank Balances
by average assets.
Net income divided by average Interest income on balances due
assets. from depository institutions divided
Realized Gains (Losses) on by the five-point average of interest-
Available-for-Sale Securities Net Income (Last Four Quarters) bearing bank balances.
(Percent of Average Assets) (Percent of Average Assets, Last Four
The difference between the sales price Quarters) (Yield on)
and the amortized cost that is realized Federal Funds Sold and Reverse Repos
The cumulative amount of net
from the sale, exchange, redemp- income reported for the latest four Interest income on federal funds
tion, or retirement of securities that quarters divided by the mean of sold and securities purchased under
are classified as available-for-sale quarterly average assets reported in agreements to resell divided by the
divided by average assets. Schedule HC-K for the most recent four-point average balance of federal
four quarters. funds sold and securities purchased
Other Tax Equivalent Adjustments under agreements to resell.
(Percent of Average Assets)
Margin Analysis (Yield on)
Other tax adjustments, excluding the Trading Assets
tax benefit on tax-exempt income, Average Earning Assets/
divided by average assets. (See the Average Assets Interest income from assets held in
discussion of tax equivalency on trading accounts divided by the five-
page 2-3.) Average earning assets divided by point average of trading assets. The
average assets. interest income from trading assets
Pretax Net Operating Income (TE) excludes gains or losses on assets
Average Interest-Bearing Funds/ held in trading accounts.
(Percent of Average Assets) Average Assets
Income or loss before income taxes, Average interest-bearing funds (Yield on)
extraordinary items, and other adjust- divided by average assets. Total Earning Assets
ments on a taxable equivalent basis
divided by average assets. Total interest income divided by
Interest Income (TE)/ average earning assets.
Average Earning Assets
Applicable Income Taxes (TE)
(Percent of Average Assets) Total interest income on a taxable
equivalent basis divided by average Investment Securities (TE)
The sum of applicable income taxes, earning assets. (Yield on)
the tax benefit on tax-exempt income,
Investment Securities (TE)
and other tax equivalent adjust- Interest Expense/
ments divided by average assets. Average Earning Assets Interest income on total investment
securities plus the estimated tax
Total interest expense divided by benefit on interest income from tax-
Minority Interest average earning assets.
(Percent of Average Assets) exempt securities divided by the five-
point average of the amortized cost of
Minority interest in consolidated sub- Net Interest Income (TE)/ all investment securities.
sidiaries divided by average assets. Average Earning Assets
Net interest income on a taxable (Yield on)
Net Operating Income equivalent basis divided by average U.S. Treasury and Agency Securities
(Percent of Average Assets) earning assets. (Excluding Mortgage-Backed
Securities)
Income or loss before extraordinary
items and other adjustments divided Income on U.S. Treasury securities
by average assets. Yield or Cost and obligations of the U.S. govern-
ment agencies and corporations
(Yield on)
(excluding mortgage-backed securi-
Net Extraordinary Items Total Loans and Leases (TE)
ties) divided by the five-point average
(Percent of Average Assets)
Interest and fee income on loans of the amortized cost of U.S. Trea-
Extraordinary items net of applicable and lease financing receivables on a sury securities and U.S. government
income taxes and minority interest taxable equivalent basis divided by obligations (excluding mortgage-
divided by average assets. average loans and leases. backed securities).

3-14 BHCPR User’s Guide • March 2007


(Yield on) $100,000 or more in domestic offices average balance of foreign interest-
Mortgage-Backed Securities divided by the five-point average bearing deposits.
balance of time deposits of $100,000
Income on mortgage-backed secu- or more in domestic offices. (Cost of)
rities divided by the five-point
Federal Funds Purchased and Repos
average of the amortized cost of
mortgage-backed securities. (Cost of) The expense on federal funds pur-
Time Deposits below $100 Thousand chased and securities sold under
(Yield on) Interest paid on time deposits less agreements to repurchase divided
All Other Securities than $100,000 in domestic offices by the four-point average balances
divided by the five-point average of federal funds purchased and
Interest income on all other debt securities sold under agreements to
securities and equity securities that balance of time deposits below
$100,000 in domestic offices. repurchase.
are reported on Schedule HC-B
as securities issued by states and
(Cost of) (Cost of)
political subdivisions in the U.S.,
Other Domestic Deposits Other Borrowed Funds &
asset-backed securities, other debt
Trading Liabilities
securities, and investments in mutual Interest paid on other domestic
funds and other equity securities deposits divided by the five-point Interest expense on trading liabilities
with readily determinable fair values average balance of the sum of and other borrowed money, exclud-
divided by the five-point average negotiable orders of withdrawal ing subordinated notes and deben-
of the amortized cost of all other (i.e., NOW accounts), ATS accounts tures, divided by the average balance
securities. (that is, accounts subject to automatic of other borrowed funds trading
transfer from savings accounts), liabilities.
(Cost of) other transaction accounts, mon-
Interest-Bearing Deposits ey market deposit accounts, and (Cost of)
other savings accounts in domestic All Interest-Bearing Funds
Interest paid on all interest-bearing
deposits divided by the average offices. Total interest expense divided by
balance of domestic and foreign average interest-bearing funds.
interest-bearing deposits. (Cost of)
Foreign Deposits
(Cost of)
Interest paid on deposits in foreign
Time Deposits of $100 Thousand
offices, Edge or Agreement subsid-
or More
iaries, and International Banking
Interest paid on time deposits of Facilities divided by the four-point

BHCPR User’s Guide • March 2007 3-15