Business Glossary

earnings reported by a bank or bank holding company, after deducting normal operating expenses, but before taking gains or losses from sale of securities, other losses and charge-offs, and additions to the reserve account for possible loan losses. Normally, NOI refers to earnings before federal income taxes are paid. Also called net earnings or net income.

income from property or business after operating expenses have been deducted, but before deducting income taxes and financing expenses ( interest and principal payments).

income from property or business after operating expenses have been deducted, but before deducting income taxes and financing expenses ( interest and Principal Payments). The formula is:

NOI = gross income – operating expenses

Example: A property produces rental income of $100,000 during the year. The expenses incurred are shown in Table 35.