a. Prepare a horizontal common-size analysis for 2008, 2007, and 2006 for the following items from the Consolidated Statements of Operations (use 2006 as the base).

1. Total interest income

2. Total interest expense

3. Provision for credit losses

4. Total fees an other income

5. Total general and administrative

6. Total other expenses

7. Net (loss)/income

b. Comment on the trends indicated in (a).

c. Using Note 7—Loans, comment on the following:

1. Total charge-offs

2. Charge-offs, net of recoveries

3. Allowance for loan losses balance, end of period

4. Total impaired loans

5. Allowance for impaired loans

6. Total non-accrued loans

7. Total loans past due 90 days as to interest or principal and accruing interest

d. Compute the following for 2008 and 2007 (use ending balance sheet accounts):

1. Earning assets to total assets

2. Interest margin to average earning assets (use end of year earning assets)

3. Loan loss coverage ratio

4. Equity to total assets (use year-end numbers)

5. Deposits times capital (use year-end numbers)

6. Loans to deposits (use year-end numbers)

e. Comment on the trends indicated by the ratios computed in (d).