Learn More: Sources of Information to Consider When Evaluating Management

Category Specific reports Some things to look for:

Bank financial statements

Balance sheet or quarterly report of condition

Income/expense statement (or quarterly report of income)

Uniform Bank Performance Report

  • Overall financial performance: Increasing or declining trend?
  • Changes in any asset/liability category: Significant? Consistent with the bank’s strategy? Approved by the board?
  • Variations from budget: Significant (>10 percent)? Management’s explanation?
  • Capital: Which PCA category? Capital growth at least > asset growth?
  • Liquidity: Increased reliance on borrowings or volatile funding versus core deposits?
  • Earnings trend: Consistent or erratic?
  • Source of earnings: Recurring (sustainable) or nonrecurring?
  • Decisions that increase short-term profits at the expense of long-term profits
  • Comparisons with peer banks: Favorable or unfavorable?

Internal/external audit reports

Reports from internal or external auditors

  • Sudden or unexpected changes in auditors
  • Significant changes in the audit program
  • Audit reports that do not address matters identified by the bank examiners
  • Significant audit findings that are not adequately corrected in a timely manner
  • Significant deficiencies consistently noted in audit reports

Other reviews commissioned by the board of directors

Compliance reviews

  • Periodic reports on the bank’s compliance
  • Significant deficiencies not corrected in a timely manner
  • Significant turnover in compliance staff
  • Evidence compliance is considered in the development and delivery of new products

Loan reviews and other quality assurance reports

  • Loans classified by the examiners that are not identified by the internal loan review
  • Trend of classified assets

Supervisory reports of examination

Reports of examination, CRA public evaluations and other communications from the bank’s regulator

  • Significant deficiencies not corrected in a timely manner
  • Significant deficiencies consistently noted in examination reports
  • Comments relating to control and risk management systems, policies, procedures and management adequacy


All this information will help you piece together an accurate, qualitative picture of management at your bank. You are now ready to “Try This” on your own, but keep in mind the checklist is not all-inclusive of the things to consider in your review of management. There may be other standards of performance adopted by the board at your bank for evaluating management.