version 4.03 Expected Actual JPMORGAN CHASE BANK, NATIONAL ASSOCIATION Value Value See the 4 steps to take in using this form >>>> Efficiency Ratio (A lower number is best) <60% 67.1% Type of Loans & Percentage held [Compares Non-Interest expenses to Total Income (Interest and non-interest income)] 27.5 1-4 Family home Mortgages.+MBS (Least risk) 3.4 Commercial Real Estate Loans (Medium risk) ROA (Return on Average Assets) >1% 0.50% 0.5 Construction Loans (Most risk) [Net Income / Average Total Assets] 6.4 Commercial and Industrial loans (Medium risk) 4.6 Consumer Loans (Medium risk) ROE (Return on Average Equity) 6.7% The higher the percentage of 1-4 Family Home [Net Income / Avg. Shareholders' Equity] Very Healthy Mortages the better--under normal market conditions. If Construction loans are prevalent, the risk is high. Capital Adequacy (Capital Ratio) >8-10% 7.8% [Total Stockholders Equity / Total Assets] Provision for Loan Losses as a % of Total Loans Curr. Yr. <1% 4.47% [Provision for Loan Losses / Total Investment loans] Prior Yr. 2.71% Caution, trend is up. Is this industry wide or bank specific? Loans -- change from prior year -16.1% Caution, Provision for Loan Losses is greater than the increase in Loans Loss Reserve Coverage >100 66 Below Normal Loan Loss Reserves / Non Performing Loans Net Interest Margin >5% 2.61% Substantially Below Average Net interest margin is a guide to the profitability of a companies investments. Nonperforming assets as a percent of total assets 24.59 Higher Than Standard [Nonperforming Assets / Equity plus Loss Reserves] Overhead 2.74 Significantly Higher Than Average As a percentage of average Assets Net Worth to Total Assets 7.61 Significantly Below Norm Interest Rate Spread >3% It is suggested Investor Relations be called and asked for the not avail The difference between what is received in interest and what is paid in interest. Interest Rate Spread. It-s not normally reported but it's important. This bank has been rated below average. (Rating: 1 through 5 stars) STAR RATING: 2 starstar All data opinions and STAR Ratinngs shown are from BankRate.com As stated, we have determined a composite Star rating for this bank of 2 starstar, indicative of a below average financial condition. At times, financial conditions of banks change rapidly and significantly. Hence, our Safe & Sound Star ratings should not be deemed predictive of likely future ratings. However, in view of early warning indicators set forth within this report, in combination with the institution's financial data, we believe that the Star rating for this institution is unlikely to change within the ensuing twelve month period. The bank revealed, as previously stated, questionable asset quality. Our conclusion with respect to asset quality incorporates our analysis of data depicting regional economic conditions as well as our computations of a higher than standard March 31, 2010 nonperforming asset ratio, below normal reserve coverage for nonperforming loans, and apparently acceptable quality, or no greater than average, holdings of commercial real estate and construction loans, two categories that can intensify credit risk. Bankrate believes that, as of March 31, 2010, this bank exhibited a below average condition, characterized by approximately normal overall, sustainable profitability, questionable asset quality, below standard capitalization and lower than normal liquidity.
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