BAS Case Study - March 2023
Capital Analysis – Sunny State Bank
Objective : Analyze the capital adequacy of Sunny State Bank to answer the questions below, determine the component rating and support the assigned rating with a written comment.
Sunny State Bank UBPR Sunny State Bank Capital Plan Examiner Memo of Capital at Sunny State Bank Capital Basics Job Aid UFIRS Capital Rating Definitions
Discussion Questions: What happened to Total Capital from 12/31/2017 to 12/31/2018? What were the largest drivers of change (what happened during the year)?
What about Average Assets and Tier 1 Capital?
What about Risk Weighted Assets and Total Assets for Leverage Ratio?
What are the bank’s four capital ratios? How do they compare to the prior year? What would you say looks like the reason the ratios changed (i.e. break down the numerator and denominator)?
What is the capital designation of this bank?
Based on this, what do you think of the Capital Plan? What are some options the bank has if they wanted to raise additional capital?
How would you rate Capital at Sunny State Bank, and why?
What other component areas that you see at this bank could impact how you rate Capital?
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