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Additional Guidelines for Writing the Research Rep...




Additional Guidelines for Writing the Research Report As you complete your research and begin writing the report, it is important that in addition to the format shown in the guidelines, the report is presented in the following manner: 1. All figures must be current, which means obtaining from the FDIC/FFIEC website the Dec. 31, 2009 and Dec, 31, 2008 financial information for both banks, as well as the most current data available for the last calendar quarter. The information may be found by clicking on the Call & Thrift Report Section above the Uniform Bank Performance Report Section (UBPR). 2. Wherever it states Bank A and Bank B, it means that you insert the actual names of both banks. 3. All comparisons must be presented in landscape form side by side, The Text portion as well as the financial data for Bank A is to be presented towards the left side of the center of the page, and for Bank B towards the right side of the center. In this manner you can easily read and quickly review and analyze the type of services offered, or the numbers for the same financial account without having to re-type the same information, or the name of the account twice. It is difficult to analyze text or numbers when they are presented in top to bottom format or in a different page. In accounting statements, the most current numbers always appear first. 4. The comparisons should be for years ended Dec 31 shown as follows: (in Million) (000) which means that if the bank has $500 million in Assets, and loans comprise $ 300 million, it will be presented as shown below: Example Dec 31 Total Loans Name of Bank A 2010 2009 2008 2007 2006 300.5 275.8 250.3 255.4 225.2 Name of Bank B 2010 2009 2008 2007 2006 305.3 300.2 299.7 285.3 275.0 5. You see how easily is to compare the amount of total loans for each bank for each year by looking across the page. You only have to type the account loans once. Note: The FFIEC numbers appear in 000 (thousands) which mean the last three numbers from right to left represent thousands, and the fourth to the sixth numbers represent millions. The seventh number is then at least a billion. 6. You need to analyze in this manner the major balance sheet and income accounts shown on the guidelines. 7. When you present the loan section, please break it down by type: Real Estate, Commercial, Consumer, other, as shown on the FFIEC Report, as well as the Allowance for Loan Losses Account together with the Provision for Loan and Lease Losses (income statement) 8. When you complete the comparison for each item, then show below the numbers, one graph with a different color line for each bank showing the growth or reduction in assets or income and expenses as time elapses. The graph is presented on the horizontal axis with year 2003 first and 2007 last . The vertical axis shows the smaller numbers towards the bottom and the larger number toward the top of the page. 9. Please be consistent and maintain the same color for bank A and the same color for bank B on the financial tables and on the graphs. Use only line graphs in the charts. 10 Once you have inserted the financial table and the line graph for each major account, then write your trend analysis of the particular account in no more than five sentences. 11. Maintain the above described format for each account analyzed. 12. When comparing and analyzing ratios you must insert the ratios for the applicable peer group for all the five periods. Your analysis should discuss the trend of each bank when compared to the other and the peer group. This is very important to follow for all five periods being analyzed and evaluated. 13. Please do not forget to consult the regulatory agencies websites for any enforcement actions against the bank, especially today with the Bank Secrecy Act Compliance, (Anti-Money Laundering) policies and procedures. Also search the local newspapers for any recent important information on the banks. 14. The information for rates paid on deposits may be found on the money page of the Sunday or Monday Newspaper. For example the Miami Herald used to published it on the last pages of the Business Monday supplement. It is now shown on the Sunday edition of the Money pages. Not all bank rates are published, so please contact the banks' websites or call the banks. Commercial and Real Estate loan rates may not be published, as they are individually tailored, according to risk and collateral, so the banks may have to provide you a range. Find out if they lend on Prime Rate or LIBOR base rates. What is their current prime rate? 15. When you arrive at the decision page, please note the following: a) In the first case, you are a depositor, meaning you are creditor. You are placing funds for a specific period of time at a specific rate. The fact that a million dollar deposit is not FDIC insured is not an acceptable reason to deny placing the deposit. The analysis is what is important, not the insurance. Is the bank liquid, profitable, operating in a safe and sound manner and of reasonable size for you to deposit that amount? b) In the second case, you become an investor, a stockholder. What do you expect form this investment? There is no assurance that dividends will be paid, if you want to sell your shares, you may have to find a buyer in the market or sell to another stockholder willing to buy. How much has the share value grown in the last few years? What is the book value per share? What is the current market value per share? What kind of dividends have been paid in the past? If it is a new bank or a rapidly growing one, dividends may not be or cannot be paid. c) In the third case you are a third bank lending funds on a short term basis. Therefore you are a creditor and you are approving someone else's money.,I chose sabadell united and ocean bank in florida,please let me know if you have received the files


Paper#5523 | Written in 18-Jul-2015

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