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Nebraska Bank of Commerce

In:

Submitted By bdinh1993
Words 1109
Pages 5
Bank Management 465/865
Fall 2014
Homework #1- Analysis of Financial Performance

1. First you will need to download the Asset and Liability reports and the Income and Expense reports for Nebraska Bank of Commerce (NBC) from the FDIC web page. a. Go to the FDIC website, go to Industry Analysis, Bank data and statistics, then use the Institutional directory and find banks. b. Once you find NBC, notice the ID report selection box on the web page. Use this drop down menu to generate Asset & Liability reports for 12/31/10, 12/31/11, 12/31/12 & 12/31/13 and the Income and Expense report for years 2010, 2011, 2012 and 2013

2. Use financial ratio analysis to compare and contrast each year to see what happened to the banks financial performance. Be sure to comment on both its historical and current financial condition. Also, what accounts for the improved profitability of the bank?

3. Identify the five key reasons why the bank turned around based on your analysis.

For question 2 - consider calculating the following:

Profitability measures such as ROE and ROA
Burden/Total Assets
NIM
Net Credit Loss/Total Loans
Non-performing Loans/Total Loans
% Growth in Total Loans

Consider other ratios you may feel are appropriate to adequately address the questions.

Due November 19th at the beginning of class.

2) 2010 2009
Return on assets (ROA) -4.62% -2.68%
Return on equity (ROE) -46.63% -24.32%
Burden Ratio 4.02% 2.89%
Net interest margin 2.41% 3.05%
Non-Performing Loans/ Total Loans 4.69% 4.10%
Rates Paid on Funds (RPF) 1.98% 2.25%
Capital Adequacy Ratio (CRAR) 19.20% 14.09%

From these financial calculation, Return on Assets and Return on Equity in 2010 had decrease from 2009. It shows that NBC was receiving less revenue

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