1. INTERSESSION PROJECT Graduate School of Retail Bank Management July 2014 Community Leader

2. Why are we here? 2

3. Objectives  How and where to find public information for assignment  Uniform Bank Performance Report (UBPR) or Credit Union Financial Performance Report  Customer Experience Results (if applicable)  Community Reinvestment Act (CRA) Results  Investor Relations Presentations/Press Releases

4. Retail Marketing Plan: 2014 Game Plan

5. Ethics Although most of the on-site school assignments are done in a team setting where each individual is expected to contribute appropriately, the homework assignment must be an original effort done solely by you. The only exception is that interviews of bank executives may be done in groups. Printed information produced by anyone, including your bank/employer, is not your own work unless you were the original author. If you need to use information verbatim from a book, annual report, other bank publication, website, etc. you must indicate this and list your source. Violations will be reviewed by the Faculty Advisory Committee, and results may be shared with your sponsoring institution and may include expulsion from GSRBM.

6. Balanced Scorecard

7. Where to Find Data? UBPR OCC Investor Reports

8. UBPR Reports

9. ffiec.gov 9

10. UBPR Reports 10

11. UBPR Reports 11

12. UBPR Reports Optional: Can use FDIC Certificate # 12

13. UBPR Reports 13

14. UBPR Reports 14

15. UBPR Reports Hint: Use the Print function and check mark to view reports. 15

16. Credit Unions Go to ncua.gov Under “Credit Union Resources” click on “Financial Performance Reports” 16

17. ncua.gov 17

18. ncua.gov 18

19. ncua.gov 19

20. Activity  In pairs, log onto  ffiec.gov or  ncua.gov  Search for your institution  Use 12/31/2013 as the starting date  Download or bookmark  If your institution is NOT available 1. Non bank? Select a bank that you will use for your paper 2. International?

21. Summary Ratios Page 21

22. Summary Ratios Page 22

23. Summary Ratios Page 23

24. Summary Ratios Page UBPR does not provide ROE So: Calculate ROE = 3099/50659 = 6.12% 24

25. Balance Sheet Page 25

26. Balance Sheet Page 26

27. Non Int Income, Exp Yields Page 27

28. Non Int Income, Exp Yields Page 28

29. Investor Reports

30. Activity  Go to your Bank’s or Credit Union External Website  Look for the Link “About Us” or “Investor Relations” Search this page for recent presentations Credit Unions look for Recent News or Media Review Member reports and Annual Reports Download or bookmark Presentations contain additional elements you can include in your scorecard  Google the name of the bank if necessary

31. Investor Presentations

32. Sample Investor Report- Bank

33. Sample Report Credit Union 33

34. CRA  Optional Balanced Scorecard element  Credit Unions and foreign banks do not have a CRA rating List n/a in this section  Meet with your Community/Public Affairs team  They will have the Public CRA information, including ratings  You can also review on-line. The OCC website is below: http://www.occ.gov/topics/compliance-bsa/cra/index-cra.html

35. Customer Experience  Optional Balanced Scorecard element  Include if bank or credit union has Public Information  Common Agencies that have public surveys are JD Power and Associates (www.jdpower.com)www.jdpower.com ACSI (www.theacsi.org)www.theacsi.org

36. Estimating Expenses/Revenues  Include Cost estimates in your assignment  If possible include actual costs and revenues to implement your recommendation  If you cannot obtain costs, or they are not public data, use the information from the MarketSim manual as a starting point For example- if you are opening branches, the cost for branches in MarketSim is

37. Identifying Risks  Types of Risk  Can you classify the potential risk?  All recommendations carry some form of risk to the organization  Do the benefits of your recommendation outweigh the risk? Clearly address 37

38. 38 Types of Risk  Credit Risk  Interest Rate Risk  Liquidity Risk  Price Risk  Operational Risk  Compliance Risk  Strategic Risk  Reputational Risk Arise from structural changes in the balance sheet… http://www.occ.gov/news-issuances/bulletins/2014/bulletin-2014-1a.pdf

39. Formulate your Recommendations  Complete your Financial and Marketing Analysis  Is there a gap that needs to be filled? A competitive offering? Disruptive Innovation?  Did you identify a negative trend? What is it? What can be done to improve it?  Did you identify a positive trend? What is it? Do you know why? Is it a strength you can capitalize on? 39

40. Management Interviews - Tips  What are some things to consider as you prepare for your interview? Do your homework Have questions prepared and practice Dress appropriately Be respectful 40

41. Grading Guidelines

42. 42

43. Questions?????