BAS Case Study - March 2023
Sunny State Bank
LIQUIDITY - LOANS TO ASSETS & DEPOSITS
Net Loans to Assets Ratio
72.0%
68.0%
64.0%
Metrics
60.0%
Bank State All Banks
55.7% 55.8%
55.2% 54.8%
55.2% 54.4%
56.0%
54.4% 54.9%
54.1% 54.4% 54.7%
53.5% 54.4%
52.8%
52.0%
51.0% 50.4%
52.0%
49.2% 49.6% 49.5%
50.2%
2013Q4
2014Q1
2014Q2
2014Q3
2014Q4
2015Q1
2015Q2
2015Q3
2015Q4
2016Q1
2016Q2
2016Q3
2016Q4
2017Q1
2017Q2
2017Q3
2017Q4
2018Q1
2018Q2
2018Q3
2018Q4
Net Loans to Core Deposits
88%
84%
80%
76%
72%
68%
68%
65%
65% 65% 65% 64% 65% 64%
65% 65% 64%
64%
64%
63%
64%
62%
64%
61%
60% 60%
60% 60%
2013Q4
2014Q1
2014Q2
2014Q3
2014Q4
2015Q1
2015Q2
2015Q3
2015Q4
2016Q1
2016Q2
2016Q3
2016Q4
2017Q1
2017Q2
2017Q3
2017Q4
2018Q1
2018Q2
2018Q3
2018Q4
• Since loans are generally illiquid, the Loans to Assets Ratio will typically move inversely of changes in liquid assets. For example, higher loan volume as a percentage of assets would lead to a lower amount of liquid assets as a percentage of assets. • A high Loans to Core Deposits Ratio would indicate the liquidity position is tight while a low ratio would indicate the level of core deposits has been sufficient to fund loan demand without much need for wholesale funding. Note that this is a custom ratio and differs from the Loans to Deposits Ratio in the UBPR (numeratior is the same but denominator has been adjusted to exclude listing service deposits and include TCDs>250M.
Made with FlippingBook Online newsletter creator