Analysis framework correlating published fee schedules with actual service charge revenue from Call Reports
Bridge the gap between published fee schedules and actual fee revenue by correlating extracted fee amounts with Call Report service charge income data from FDIC (banks) and NCUA (credit unions).
Retrieve the institution profile:
Map the institution to its peer group (charter_type, asset_tier, fed_district) for comparative analysis.
Compute three ratios that measure how reliant the institution is on fee income:
| Metric | Formula | Benchmark |
|---|---|---|
| Fee Dependency Ratio | Service charge income / Total noninterest income | Banks: 15-25%, CUs: 10-20% |
| Fee Intensity | Service charge income / Total assets (bps) | Banks: 20-40 bps, CUs: 15-30 bps |
| Fee-to-Net-Income | Service charge income / Net income | Healthy: <50%, Elevated: 50-100%, Critical: >100% |
For each institution, compare:
Estimate a "fee schedule aggressiveness score" by summing the institution's published fees (weighted by typical transaction volume) and comparing to peers with similar revenue profiles.
Flag institutions where published fees and reported revenue diverge:
Rank the institution against peers on each ratio. Compute percentile position within the peer group for fee dependency, fee intensity, and fee-to-net-income.
If multiple Call Report periods are available:
CERT/Charter: [ID] | Assets: [total] | Charter: [bank/credit_union] | Peer group: [tier, district]
| Metric | Institution | Peer Median | Peer P25 | Peer P75 | Percentile | Assessment |
|---|---|---|---|---|---|---|
| Service charge income | $2.4M | $1.8M | $1.2M | $2.8M | P64 | Above median |
| Fee dependency ratio | 22.1% | 18.5% | 14.0% | 24.0% | P68 | Moderate |
| Fee intensity (bps) | 32 bps | 28 bps | 20 bps | 38 bps | P58 | Average |
| Fee-to-net-income | 38% | 32% | 22% | 48% | P62 | Healthy |
| Category | Published Fee | Peer Median Fee | Fee Percentile | Revenue Signal |
|---|---|---|---|---|
| overdraft | $35.00 | $33.00 | P72 | Consistent |
| nsf | $35.00 | $32.00 | P78 | Consistent |
| monthly_maintenance | $0.00 | $10.00 | P0 | Waived (likely offset) |
| atm_non_network | $3.00 | $2.75 | P60 | Consistent |
| wire_domestic_outgoing | $30.00 | $30.00 | P50 | Consistent |
| card_foreign_txn | $5.00 | $2.00 | P95 | High -- verify volume |
Position [X] of [N] peers by fee dependency ratio.
| Fee Dependency Ratio | Reading | Implications |
|---|---|---|
| < 10% | Low dependency | Diversified noninterest income; fee reductions have limited P&L impact |
| 10% - 20% | Moderate | Balanced income mix; standard for well-run community institutions |
| 20% - 35% | Elevated | Material reliance on fee income; vulnerable to regulatory fee caps |
| > 35% | High dependency | Fee income is a primary earnings driver; significant regulatory and competitive risk |
| Fee Intensity (bps) | Reading |
|---|---|
| < 15 bps | Low extraction; may indicate fee waivers, digital-first model, or CU philosophy |
| 15 - 30 bps | Normal range for community institutions |
| 30 - 50 bps | Above average; strong fee income generation |
| > 50 bps | Aggressive extraction; scrutinize for consumer impact |