A. Commercial bank financial analysis
1. Perform the following standard ratio analysis using the 2020 end-of-year (December 31) financial statement information for the bank holding company (BHC) that you are studying. Details can be found in Chapter 12 of
the textbook. Provide a brief but informative written analysis of the results.
You can download all necessary data from the FDIC website. Go to fdic.gov and click on:
– Analysts Institution Directory Search Bank Holding Companies. – Enter the BHC name and state (or its ID #). – Click on the name of your banking company. – Click on the BHC ID link for your banking company. – On the pull-down menu, select “All Summary Information.”
NOTE: As we discussed in class, do not use the definition of “operating income” from page 389 of the
textbook. Instead, use the following more standard definition:
Operating income = noninterest income + net interest income – provisions for loan losses.
2. Construct trend lines:
Compile trend data for your BHC for each of the five performance ratios. Use year-end data, starting in 2000 and ending in 2020.
Compile trend data for the banking industry for each of the five performance ratios. Use year-end data, starting in 2000 and ending in 2020.
You can get banking industry data from the FDIC website:
Analysts Historical Statistics on Banking Commercial Bank Reports; or
Analysts Statistics on Depository Institutions (SDI) Retrieve Reports.
Important Note: The reports are standard for each company and the industry and all items are reported.
However, industry numbers do not need to be under the same label/heading as the individual bank
data. So, look carefully and remember: there should be absolutely no questions posed to the
professor on the commercial banking assignment.
Prepare five graphs that compare the trend lines for your BHC to those for the industry.
Provide a brief but informative written analysis of the results. Has your BHC differed from the averages? Or is it similar to the averages? Why?
NOTE: To answer these questions, you might want to click on some of the links within the income statements
and balance sheets for your BHC. This will reveal more detailed information and help you answer this
question. Good places to look are (a) loan portfolio composition (b) deposit funding (c) noninterest income (d)
loan quality (e) cost efficiency (f) interest margin.
Assets Return on Sales
There should be absolutely no questions posed to the professor on the commercial banking assignment.
The professor will not provide answers to students to prevent unfair competition. All groups need to
communicate with their group members and find answers within groups or if necessary consult other
groups since this is a “re-search” “group” project. Another approach would simply defeat the purpose.
B. Exploring the business strategy of your bank:
1. What are the fundamental underpinnings of your bank’s financial performance? Repeat the time trend analysis from part A, but this time, compare the following financial ratios (see text book) for your banking
company to the industry averages:
Net interest margin.
Allowance for loan losses, as a % of assets.
Loans to core deposits ratio.
Loans to assets ratio.
Noninterest income, as a % of operating income.
Cost efficiency ratio = noninterest expense/operating income.
Remember to define operating income as:
net interest income – provisions for loan losses + noninterest income.
2. Noninterest income. Calculate noninterest income/operating income for your bank in 2020. Also, analyze the components of noninterest income in 2020, dividing each type of noninterest income by total
noninterest income. Compare to the industry averages. Comment.
3. Loan portfolio. Calculate loans/assets for your bank in 2020. Also, analyze the components of the loan portfolio in 2020, dividing each type of loan by total loans. Compare to the industry averages. Comment.
4. Deposit funding. Calculate deposits/assets for your bank in 2020. Also, analyze the components of the deposit mix in 2020, dividing each type of loan by total deposits. Compare to the industry
NOTE: (a) The financial statements list many different categories of noninterest income, loans, and deposits.
So for items 2, 3, and 4 you should feel free to combine some of these categories to make your analysis best
illustrate your bank’s business strategies. (b) A good way to organize the data in 2, 3, and 4 is using pie charts.
Submit the Word, Excel, and Powerpoint Files of the banking project to the assignment dropbox. Finished assignment is to be turned in through Canvas in the Assignment dropbox. You
need to submit three distinct files. In addition to the word processing file, you also need to provide an
excel file including the details of your calculations and a powerpoint presentation. The dropbox is
configured as a group dropbox (only one student from the group is supposed to submit). For that
submission, the student should include the Word, Excel, and PowerPoint documents at once. The
dropbox allows for multiple files to be attached. The instructor reserves the right to check these for
academic integrity and plagiarism using technology tools like Turnitin.com. A penalty up to 15% out
of 30% or 50 points out of 100 points may be applied to the group projects who fail to timely fulfill
this requirement. The assessment criteria can be found in Appendix C of this document.
Submit the LINK to the recording of your Powerpoint Presentation to the assignment dropbox. All groups need to record and upload the link to the recording of their Powerpoint Presentation. The
recording will be shared with the rest of the class and will be the basis of the discussion forum on the
commercial bank project.
o Online video submission is strictly preferred to powerpoint with narration for purposes of feedback and evaluation. You should note that the bar for getting a passing grade on
powerpoint with narration may be higher than that of online video submission. A penalty up
to 7.5% out of 30% or 25 points out of 100 points may be applied to the final project grade
for the group projects who utilize powerpoint with narration instead of an online video
o The link to the finished recorded Powerpoint Presentation is to be turned in through Canvas in the Assignment dropbox. (Please DO NOT upload the actual file of the recording of your
powerpoint presentation to the assignment dropbox. Upload the link only). All groups
would need to host their videos externally (like on YouTube or Vimeo as unlisted) and share
that link in the assignment dropbox.
If you have an account with a file backup service like Dropbox or Google Drive, you can upload the video there and share the video via a web link.
o YouTube is one option for uploading the link of your video. Remember that you can refer to Appendix B for the details.
o The link to Google Drive is https://www.google.com/drive/. You can find the instructions for Google Drive sharing
o Link to dropbox is https://www.dropbox.com/. You can find the instructions for Dropbox sharing here at https://www.dropbox.com/en/help/274.
Your presentation should be between 15 – 30 minutes in length.
You may use Adobe Connect to record your presentation. Adobe Connect is an online tool that facilitates online meetings with the professor and other students. To make the best use of
Adobe Connect your computer should be equipped with a Web Cam and microphone, but
these are not necessary. Alternatively, you may use YouTube or the voice narration in
PowerPoint. However, online video submission is strictly preferred to powerpoint with
narration for purposes of feedback and evaluation. You should note that the bar for getting a
passing grade on powerpoint with narration may be higher than that of online video
submission. A penalty up to 7.5% out of 30% or 25 points out of 100 points may be applied
to the final grade of the group projects who utilize powerpoint with narration instead of an
online video submission.
Group members should use their own discretion on the member(s) who will present the project. It can be presented by one person or include up to six people sharing the presenting
role. Regardless of who or how many present, the entire group gets one grade. Additional
information about resources, frequently asked questions will be posted as necessary on the
Commercial Banking Project Discussion Forum.
Remember that the detailed instructions on how to record and upload online video or narrated powerpoint can be found in Appendix B of this document. Here is a link
from Microsoft PowerPoint that will help with powerpoint narration:
The presentation assessment criteria and some presentation tips can be found in Appendix D of this document.
Participate in the Discussion board for the banking project presentations and feedback. Check the Commercial Banking Project folder in the content area for the deadlines and group assignments.
Comment on the presentations of your assigned groups, pose at least four questions to your assigned
presenting group, and answer all of the questions from your class mates. A penalty up to 6% out of
30% or 20 points out of 100 points may be applied to the group projects who fail to timely fulfill this
Submit iPeer Confidential Peer Evaluations. You will fill out a form for each of your group members and submit. You will choose a rating for each criterion for each member. You will not see
the scores your team members assign to you and they will not see yours. It is completely anonymous.
You will only see the average of the submitted scores. Your iPeer grade is worth 10% of your overall
course grade. Students who do not participate in the iPeer Confidential Peer Evaluations will receive a
score of zero on their iPeer grade. Also, there will be a late submission penalty for late iPeer
submissions. Your iPeer evaluation grade will not be made available until the day after the group
assignment is due.
APPENDIX A. Instructions on group dynamics
o A benefit of working together in groups is to provide a different perspective that comes from listening to various viewpoints from class members who come from very diverse
backgrounds. In forming the group, consideration should be given to selection of a diverse set
of people coming from different cultural backgrounds and languages.
o It is imperative that a preliminary meeting be set up as soon as the group is formed. Members must have the opportunity to meet each other and discuss the major aspects of the
project so that everyone is on the same page. This meeting is also essential in order for group
members to get a glimpse of everyone’s personality.
Select a group leader at the first meeting. Someone always has to take the lead or invariably an important task will not be completed. Team members need to be able
to look to this person for guidance when uncertainties arise. This person should
work well with others but still have all essential leadership qualities. The individual
chosen for this role should not be the most popular person or your best friend; they
must have demonstrated previous ability and performance.
Group members must become well-acquainted with the art of compromise. Remember you are likely to be from different backgrounds with different schedules.
Try to make decisions where there is consensus across the board. Get everyone to
discuss their strengths and weaknesses up front. Although no one likes to highlight
them, it can prevent setbacks and complete disaster later on. Once you know
everyone’s strengths and weaknesses, it makes dividing up the work easier and gives
the leader a chance to help alleviate the weaker characteristics of team members.
o Divide the work equally and carefully, considering the strengths and weaknesses outlined by all members. Nobody likes those group scenarios where one person is forced to do more than
his fair share because some other member refuses to pull his weight. The leader should
receive verbal confirmation from each member to ensure that he understands his duties as
outlined and is willing to be held accountable.
o Group collaboration may be done online through Skype, Adobe Connect, or another web based mechanism. In today’s global world where people are expected to collaborate virtually
you will be developing a valuable skill.
APPENDIX B. Information for online video uploads
STEP 1: RECORDING YOUR SPEECH OR PRESENTATION
Note about Recording your Video: You must record your presentation as though you were
delivering it in front of an audience. You must be standing up and the camera frame must
show your entire body (including your feet!) as well as any visual aids you may have, i.e.
PowerPoint, Prezi, easels, or 3-D models. You can project your Powerpoint on a wall or
connect your laptop to a large screen monitor that you stand beside but you must make sure
all content is visible (and readable), all spoken words are audible, the lighting is sufficient to
show you and the Powerpoint and that everything records properly!
DRESS IN BUSINESS ATTIRE
DO NOT SIT
DO NOT RECORD HALF OF YOUR BODY,
AND ALWAYS FACE THE CAMERA
Record yourself as the image shown to the right
Use “job interview” English (no “you guys,” no slang) and conduct
yourself like a financial professional presenting to clients. You can
be friendly and engaging, but you should assume you are presenting
to a “mixed” audience, not your peers.
After you have recorded your video, you will upload it to Youtube
(you can make it “unlisted” so no one can search under your name
and find the video). Follow the directions listed below for detailed
instructions on setting up your YouTube account and sharing your
PLEASE READ EACH STEP CAREFULLY TO AVOID ANY ISSUES
STEP 2: Set up your FIU YouTube account with your FIU student email
Sign in to your FIU student account (ex: firstname.lastname@example.org) by going to panthermail.fiu.edu.
On the next screen, in the top right corner, click on the little grid of tiny squares. Then click on “More” to open
another menu and find the YouTube icon. Click on the YouTube icon and sign in using your email@example.com
1. Click on your name at the top left, which will guide you through creating your YouTube channel.
2. When you finish, your YouTube channel should be activated.
Step 3: After you’ve recorded your video, you will upload it to your FIU YouTube
UPLOADING YOUR VIDEO PRESENTATION:
Please note: Video files are very large, and can be problematic to upload & manage. Please follow
Note about Privacy: YouTube offers you the option to make your video unlisted, meaning that it cannot be
found in a search, and thus, is not viewable to anyone without the link. Only people with whom you share the
link with will be able to watch your video.
** To successfully upload your YouTube video, you will need to use a current version of Chrome,
Firefox, or Safari – NOT Internet Explorer.
Upload your video: To upload your presentation video
1. Login to YouTube using your FIU student email: www.youtube.com
2. Click on Upload
3. Click on the big arrow and select the file to upload
4. Change the privacy setting from Public to Unlisted
5. YouTube will begin to upload your video.
6. While your
video is uploading and processing, change the name of your video to “Your Name – Your Course”
and click “Done.” See sample below:
7. Click on the link that was generated and make sure your video plays and has audio.
8. Below your video, click on “Share.” Note: Since this is an unlisted video, YouTube will warn you about sharing it, but you have made it unlisted so
only those who have the link will be able to see it.
9. Highlight the generated link and copy it.
10. Paste the link you copied into the assignment dropbox.
That’s it! You have successfully uploaded your video into YouTube and supplied us with the link to view it.
Remember: You are responsible for verifying that your video was uploaded successfully and can be viewed
on YouTube via the link.
APPENDIX C. Research Project Assessment Rubric
The written part of the commercial banking group project will be assessed according to the following
argued; ideas are
evidence and facts,
as well as examples
and specific details.
2) Directly addresses
main question or
issue, and adds new
insight to the subject
not provided in
lectures, readings, or
Retains nearly all of
presented in class
and synthesizes this
knowledge in new
ways and relates to
material not covered
in the course.
3) Clearly presents a
main idea and
throughout the paper.
Contains a clear
the reader know
exactly what the
students are trying to
and examples that
prove the thesis; a
or issue, but
does not add
great deal in
class and are
3) There is a
most of the
from the text.
1) Content is
sound and solid;
ideas are present
usually of a
2) Attempts to
question or issue,
but fails. The
the course, but do
convey it to
3) Vague sense of
a main idea,
attempt, but fail,
to make an
starts with a
or anecdote that is
never put into
4) Contains thesis
1) Content is not
2) Does not
question or issue,
and the students
have not retained
from the course.
3) No main idea.
No attempt to
4) Thesis statement
lacks clarity and
importance of the
research and how it
can be used.
to the end;
to why the
that prove thesis;
Organization 1) Well-planned and
statement of main
idea, transitions and
2) All paragraphs
have clear ideas, are
examples and have
3) Consistent and
1) There is a sense
although some of
tools are used
examples may be
3) Shows some
1) No sense of
2) Paragraphs lack
clear ideas. Little
or no attempt of
3) Lack of
that convinces reader
to accept main
of all pieces of
evidence is clearly
stated. There are no
gaps in reasoning—
i.e., the reader does
not need to assume
anything or do
additional research to
2) Evidence is used
from a wide range of
of the main
not all. The
may not be
make a few
1) Not enough
from lectures and
readings is not
Uses only a few of
provided in class,
or does not go
beyond what has
been provided by
1) Either no
provided, or there
2) There is little or
no mention of
readings. The paper
does not use
or if it does, the
sources are not
3) Does not use
lectures and course
journal articles, etc.
discussed in class.
3) Sources are
integrated and they
argued in the paper
4) All Quotations
and Works are Cited
or do some
all aspects of
2) Evidence is
heavily on a
set of sources.
Some effort is
made to go
not much. If
used, they are
for a general
3) Sources are
4) There may
errors, but all
required to do
some claims made
in the paper, but
might not be
within the paper’s
4) There may be a
few errors in the
citations of the
by instructor, or
4) The sources,
works are not cited
correctly, nor listed
Style 1) Sentences are
clear and varied in
pattern, from simple
to complex, with
excellent use of
2) There is clear use
of a personal and
unique style of
are clear but
few may be
there may be
1) Sentences are
generally clear but
or unclear content;
there may be
1) Sentences aren’t
2) No attempt at
3) No use of
writing, suited to
purpose; the paper
holds the reader’s
interest with ease.
3) Large amounts of
2) There is an
attempt at a
but style of
or unsuited to
3) Some use
go on for too
2) There is little
attempt at style;
reads as flat and
content, which is
3) Little use of
spelling, syntax and
few errors in
but not many.
Some evidence of
editing: Shows a
pattern of errors in
of lack of proof-
APPENDIX D. Presentation Tips and Presentation Assessment Rubric
See some general public speaking and presentation tips below.
You should use “job interview” English (no “you guys,” no slang, etc.) and conduct yourself like a financial professional presenting to clients. You can be friendly and engaging but you should assume
you are presenting to a “mixed” audience, not your peers.
You need to dress in business attire.
Have an understanding of your audience (what they know, what they don’t know) and use language they will understand, along with examples, anecdotes or analogies to aid comprehension.
Be knowledgeable of your subject. You can’t explain what you do not know.
Focus on the message. What do you want them to take away/learn from your presentation?
Be positive. People learn better when the message is framed in a positive way, rather than a negative way. Focus on what they can do, not what they cannot…
Practice, Practice, Practice! Most presentations fail because the presenter has not prepared adequately and attempts to “wing it” by reading off notes or slides or just stumbling through.
Craft a story line for your presentation. Have a beginning, a middle, and an end to your talk. Tell us what your
analysis has found…then show us your analysis…then remind us again what your analysis has found.
Throughout the talk, feel free to remind the audience of your main important points.
Online video submission is strictly preferred to powerpoint with narration for purposes of feedback and
evaluation. You should note that the bar for getting a passing grade on powerpoint with narration may be
higher than that of online video submission. Also, a penalty up to 7.5% out of 30% or 25 points out of 100
points may be applied to the final grade of the group projects who utilize powerpoint with narration instead
of an online video submission.