Comparison notes are made relative to the sample in this study; they are not statements of a general nature and they do not pertain to regulatory compliance.

EB: Exchange Bank

• asset management: good asset utilization but below average yield on earning assets and a more conservative asset allocation than average
• liability management: excellent; very low cost of funds allows bank to be profitable despite weakness in other areas
• efficiency: about average
• safety: relatively low-risk portfolio and high capitalization but liquidity is below average
• summary: a conservative bank with profitability driven primarly by access to low cost of funding earning assets

• asset management: asset utilization is better than average; very aggressive asset allocation and above average yield
• liability management: relatively high cost of funds
• efficiency: relatively high salary cost and other non-interest costs reduce the interest rate spread
• safety: relatively high percentage in loans which with higher than average loan loss allowance and relatively low equity coverage. liquidity is also lower than average.
• summary: salary cost stands out relative to the comparison group

• asset management: excellent; very high asset utilization, aggressive asset allocation and very high yield on earning assets.
• liability management: very high cost of funding assets is overcome by high yield on earning assets and efficient operation
• efficiency: excellent. managers are good at controlling cost and generating profits per dollar of salary
• safety: although asset allocation is aggressive, the loans are safer but with lower equity coverage. liquidity is relatively low.
• summary: a lean and mean bank with aggressive management able to generate high yields. watch closely: high loan to earning asset ratio and low liquidity.

• asset management: average utilization but conservative asset allocation but with lower than average yield
• liability management: below average with high cost of funds
• efficiency: good effiency and productivity allows managers to overcome poor spread
• safety: conservative asset allocation, good loan quality, excellent liquidity and better than average equity coverage of loan losses.
• summary: well run conservative bank

• asset management: average asset utilization and somewhat conservative asset allocation with lower than average yield on earning assets. high positive liquidity in the fed funds market increases total utilization ratio.
• liability management: excellent: best of the small banks in cost of funding earning assets; excellent spread and net spread.
• efficiency: good. efficient operations and productivity generate very high net interest rate spread
• safety: loan loss allowance is higher than average with low equity coverage; relatively low liquidity.
• summary: aggressive loan portfolio and capitalization. a well run operation with very good spread and spread management

• asset management: good asset utilization is undone by very conservative asset allocation. relatively low yield on earning assets with higher than average loan loss allowance
• liability management: good. lower than average cost of funds and excellent spread
• efficiency: excellent. extremely efficient bank with low salaries and high productivity. efficiency conserves the spread.
• safety: relatively low liquidity and capitalization and high loan loss allowance
• summary: a relatively aggressive but efficient operation delivers an excellent net interest rate spread

• asset management: aggressive asset allocation compensates for poor asset utilization with yield on earning assets somewhat better than average
• liability management: relatively high cost of funds results in a spread that is below average
• efficiency: about average but with low net spread
• safety: safe. maintains excellent liquidity possibly at the expense of asset utilization. about average capitalization of loan risk. loan portfolio is of average risk.
• summary: an average bank with no strong points to overcome a high cost of funds delivers a low net spread but better than average safety.

• asset management: very good. good asset utilization and about average asset allocation but excellent yield on earning assets with about average loan risk
• liability management: high cost of funds un-does their high yield and managers deliver an average spread
• efficiency: good efficiency and productivity deliver a better than average net spread
• safety: aggressive asset allocation but with average loan risk; lower than average capitalization and liquidity.
• summary: a well managed efficient operation with good asset management suffers from high cost of funding earning assets and relatively high loan loss allowance.

• asset management: aggressive asset allocation generates an excellent yield. high positive liquidity in the fed funds market increases total utilization ratio.
• liability management: excellent: low cost of earning assets results in superior spread
• efficiency: relatively inefficient operations and high salaries eat up the spread
• safety: aggressive asset allocation but capitalization and liquidity are average
• summary: inefficient operations possibly has to do with its miniscule size

• asset management: average in asset utilization but below average yield possibly because of a conservative asset allocation strategy. large fed funds balance.
• liability management: average cost of funds with low yield on earning assets results in a low spread
• efficiency: exceptional: overcomes conservative asset management with outstanding effiency and productivity to generate the an excellent net spread
• safety: good: very safe and conservative portfolio and excellent capitalization but low liquidity of deposits
• summary: outstanding operating efficiency overcomes very conservative asset management. managers are able to combine safety and performance.