OASIS (TM) SAM and Banking Quality and Quantity of Earnings

<BODY BGCOLOR="#FFFFFF" LINK="#3333ff" VLINK="#800080" BACKGROUND="/Image1.jpg"> <TABLE width=600> <TR> <TD VALIGN=TOP ALIGN=LEFT WIDTH=125> <TABLE width="125" cellpadding="0" cellspacing="1" border="0"> <TR><TD BGCOLOR="#17bfec" VALIGN = "bottom"> <A HREF = "/index.html"><FONT SIZE=-1 COLOR="#000000" FACE="Arial, Helvetica"><B><center>OASIS HOME</center></B></FONT></A> </TD></TR> <TR><TD VALIGN = "bottom"> </TD></TR> </TABLE> <br> <TABLE width="125" cellpadding="0" cellspacing="1" border="0"> <TR><TD BGCOLOR="#D8CCD7" VALIGN = "bottom"> <FONT COLOR="#000000" FACE="Arial, Helvetica"><center><B>Contents</B></center></FONT> </TD></TR> <TR><TD bgcolor="#ccffff" VALIGN = "bottom"> </TD></TR> <TR><TD BGCOLOR="#D7D7D7" VALIGN = "bottom">  <A HREF = "/mission.html"><FONT SIZE=-1 COLOR="#000000" FACE="Arial, Helvetica"><B>Our Mission</B></FONT></A> </TD></TR> <TR><TD VALIGN = "bottom"> </TD></TR> <TR><TD BGCOLOR="#D7D7D7" VALIGN = "bottom">  <A HREF = "/aboutb.html"><FONT SIZE=-1 COLOR="#000000" FACE="Arial, Helvetica"><B>About Barkley</B></FONT></A> </TD></TR> <TR><TD VALIGN = "bottom"> </TD></TR> <TR><TD BGCOLOR="#D7D7D7" VALIGN = "bottom">  <A HREF = "/contact.html"><FONT SIZE=-1 COLOR="#000000" FACE="Arial, Helvetica"><B>Contacting Us</B></FONT></A> </TD></TR> <TR><TD VALIGN = "bottom"> </TD></TR> <TR><TD BGCOLOR="#D7D7D7" VALIGN = "bottom">  <A HREF = "/consult/consult.html"><FONT SIZE=-1 COLOR="#000000" FACE="Arial, Helvetica"><B>Consulting</B></FONT></A> </TD></TR> <TR><TD VALIGN = "bottom"> </TD></TR> <TR><TD BGCOLOR="#D7D7D7" VALIGN = "bottom">  <A HREF = "/glossary.html"><FONT SIZE=-1 COLOR="#000000" FACE="Arial, Helvetica"><B>Glossary</B></FONT></A> </TD></TR> <TR><TD VALIGN = "bottom"> </TD></TR> <TR><TD BGCOLOR="#D7D7D7" VALIGN = "bottom">  <A HREF = "/lnews.html"><FONT SIZE=-1 COLOR="#000000" FACE="Arial, Helvetica"><B>Latest News</B></FONT></A> </TD></TR> <TR><TD VALIGN = "bottom"> </TD></TR> <TR><TD BGCOLOR="#D7D7D7" VALIGN = "bottom">  <A HREF = "/litigate/litigate.html"><FONT SIZE=-1 COLOR="#000000" FACE="Arial, Helvetica"><B>Litigation Support</B></FONT></A> </TD></TR> <TR><TD VALIGN = "bottom"> </TD></TR> <TR><TD BGCOLOR="#D7D7D7" VALIGN = "bottom">  <A HREF = "/members/index.html"><FONT SIZE=-1 COLOR="#000000" FACE="Arial, Helvetica"><B>Members Only</B></FONT></A> </TD></TR> <TR><TD VALIGN = "bottom"> </TD></TR> <TR><TD BGCOLOR="#D7D7D7" VALIGN = "bottom">  <A HREF = "/riskm.html"><FONT SIZE=-1 COLOR="#000000" FACE="Arial, Helvetica"><B>Risk Management</B></FONT></A> </TD></TR> <TR><TD VALIGN = "bottom"> </TD></TR> <TR><TD BGCOLOR="#D7D7D7" VALIGN = "bottom">  <A HREF = "/sam/qna.html"><FONT SIZE=-1 COLOR="#000000" FACE="Arial, Helvetica"><B>Sam's Q&A</B></FONT></A> </TD></TR> <TR><TD VALIGN = "bottom"> </TD></TR> <TR><TD BGCOLOR="#D7D7D7" VALIGN = "bottom">  <A HREF = "/cgi-bin/search.cgi"><FONT SIZE=-1 COLOR="#000000" FACE="Arial, Helvetica"><B>Search the Site</B></FONT></A> </TD></TR> <TR><TD VALIGN = "bottom"> </TD></TR> <TR><TD BGCOLOR="#D7D7D7" VALIGN = "bottom">  <A HREF = "/stox.html"><FONT SIZE=-1 COLOR="#000000" FACE="Arial, Helvetica"><B>Stox Plus</B></FONT></A> </TD></TR> <TR><TD VALIGN = "bottom"> </TD></TR> <TR><TD BGCOLOR="#D7D7D7" VALIGN = "bottom">  <A HREF = "/techserv.html"><FONT SIZE=-1 COLOR="#000000" FACE="Arial, Helvetica"><B>Tech Services</B></FONT></A> </TD></TR> <TR><TD VALIGN = "bottom"> </TD></TR> <TR><TD BGCOLOR="#D7D7D7" VALIGN = "bottom">  <A HREF = "/whyus.html"><FONT SIZE=-1 COLOR="#000000" FACE="Arial, Helvetica"><B>Why Us?</B></FONT></A> </TD></TR> <TR><TD VALIGN = "bottom"> </TD></TR> </TABLE> <br><!Software> <TABLE width="125" cellpadding="0" cellspacing="1" border="0"> <TR><TD BGCOLOR="#D8CCD7" VALIGN = "bottom"> <FONT COLOR="#000000" FACE="Arial, Helvetica"><B><center>Software</center></B></FONT> </TD></TR> <TR><TD VALIGN = "bottom"> </TD></TR> <TR><TD BGCOLOR="#D7D7D7" VALIGN = "bottom">  <A HREF = "/best/best.html"><FONT SIZE=-1 COLOR="#000000" FACE="Arial, Helvetica"><B>BEST</B></FONT></A> </TD></TR> <TR><TD VALIGN = "bottom"> </TD></TR> <TR><TD BGCOLOR="#D7D7D7" VALIGN = "bottom">  <A HREF = "/oasis/oasis.html"><FONT SIZE=-1 COLOR="#000000" FACE="Arial, Helvetica"><B>OASIS</B></FONT></A> </TD></TR> <TR><TD VALIGN = "bottom"> </TD></TR> <TR><TD BGCOLOR="#D7D7D7" VALIGN = "bottom">  <A HREF = "/rams/rams.html"><FONT SIZE=-1 COLOR="#000000" FACE="Arial, Helvetica"><B>RAMS®</B></FONT></A> </TD></TR> <TR><TD VALIGN = "bottom"> </TD></TR> </TABLE> <br> <TABLE width="125" cellpadding="0" cellspacing="1" border="0"> <TR><TD BGCOLOR="#D8CCD7" VALIGN = "bottom"> <FONT COLOR="#000000" FACE="Arial, Helvetica"><B><center>More Stuff</center></B></FONT> </TD></TR> <TR><TD VALIGN = "bottom"> </TD></TR> <TR><TD BGCOLOR="#D7D7D7" VALIGN = "bottom">  <A HREF = "/links.html"><FONT SIZE=-1 COLOR="#000000" FACE="Arial, Helvetica"><B>Basic Links</B></FONT></A> </TD></TR> <TR><TD BGCOLOR="#D7D7D7" VALIGN = "bottom">  <A HREF = "/books.html"><FONT SIZE=-1 COLOR="#000000" FACE="Arial, Helvetica"><B>Books</B></FONT></A> </TD></TR> <TR><TD VALIGN = "bottom"> </TD></TR> <TR><TD BGCOLOR="#D7D7D7" VALIGN = "bottom">  <A HREF = "/exchange.html"><FONT SIZE=-1 COLOR="#000000" FACE="Arial, Helvetica"><B>Exchanges</B></FONT></A> </TD></TR> <TR><TD BGCOLOR="#D7D7D7" VALIGN = "bottom">  <A HREF = "/searchw.html" target="link"><FONT SIZE=-1 COLOR="#000000" FACE="Arial, Helvetica"><B>Search</B></FONT></A> </TD></TR> <TR><TD VALIGN = "bottom"> </TD></TR> </TABLE> <!START OF MAIN PAGE> </TD> <TD valign=top width=420 border=0> <TABLE width=200> <TR><TD valign=top align=center> </TD> </TR> </TABLE> </center> <TABLE CELLPADDING=5> <TR> <TD valign=top> <CENTER> <TABLE> <TR><TD valign=top> <P ALIGN="CENTER"><center><B><H1>Sam Sez</H1></B></center> </P> </FONT><FONT SIZE=3><B>Date:</B> January 19, 2000<BR> <P ALIGN="JUSTIFY"><B>Question:</B> "Bank Earnings: The Good, The Bad, and the Ugly?" </P> <P ALIGN="JUSTIFY"><B>Answer:</B> When it comes to earnings for banks, all three descriptives apply.</P><P ALIGN="JUSTIFY">During the past decade, the movement from fluctuating net interest income and margins fostered an emphasis on seemingly more stable fees. These fees ranged from originating and servicing mortgages to charging for checking accounts and trust management. That's the good.</P><P ALIGN="JUSTIFY">The bad is the masked credit quality deterioration coupled with a heavy reliance on late fees, little or no grace periods, and IRA and Credit Card annual servicing charges. That's the bad.</P><P ALIGN="JUSTIFY">The ugly will surface when questionable Asset Backed Securities (ABS) paper suffers greater than expected default rates. One trigger for this event is poor credit card portfolio holdings and a reliance on late fees and escalated interest rates relative to ordinary income and interest streams.</P><P ALIGN="JUSTIFY">We can help you analyze this situation or others, and provide timely consultations and software services.</P><A HREF="/consult/consult.html">GOTO Listing of Consulting Services.</A> </P> <HR> <BR><BR><CENTER><A HREF = "/sam/qnaarch.html">Enter the Sam Sez Archives</A></CENTER><BR><BR> <FONT size =2> <center> | <A HREF = "/mission.html">Our Mission </a> | <A HREF = "/aboutb.html">About Barkley International Inc.</a> | <A HREF = "/contactc.html">Contacting Us</a> | <br> | <A HREF = "/index.html">OASIS® Home</a> | </center> </center> <hr size="2" noshade> <FONT size="-2"><ADDRESS>Copyright © 1998-2003 Barkley International Inc. All Rights Reserved. - Page created Tuesday, May 19, 1998 by Oasis Management®. Last Modified on Saturday, May 17, 2008.</a> </FONT></ADDRESS></TD></TR> </TABLE></CENTER> </TR></TD></TABLE> </TD></TR></TABLE> </BODY>