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.