BAS Case Study - March 2023

Sunny State Bank

ALLL ACTIVITY

Current Qtr

Prior Year Qtr

2018Q4

2017Q4

ALLL Activity (Year-to-Date)

ALLL Activity (Prior Year)

Quarter

Quarter

2018Q4

2017Q4

Beg ALLL Losses

Provisions Other Adj.

50,000 100,000 150,000 200,000 250,000 300,000 350,000

Provisions Other Adj.

50,000 100,000 150,000 200,000 250,000 300,000 350,000

Beg ALLL Losses

Recoveries

Recoveries

Total

Total

ALLL to Total Loans (Level)

ALLL to Total Loans (Trend)

1.60%

Quarter

2018Q4

1.40%

1.19%

1.20%

1.20%

1.12%

0.99%

1.00%

0.84%

1.00%

0.97%

0.80%

0.84% 0.86%

0.83%

0.80%

0.75%

0.73%

0.80%

0.70%

0.70%

0.83%

0.60%

0.78%

0.76%

0.74%

0.73%

0.72%

0.71%

0.60%

0.40%

0.54% 0.58%

0.20%

Bank

State

All Banks

2013Q4

2014Q1

2014Q2

2014Q3

2014Q4

2015Q1

2015Q2

2015Q3

2015Q4

2016Q1

2016Q2

2016Q3

2016Q4

2017Q1

2017Q2

2017Q3

2017Q4

2018Q1

2018Q2

2018Q3

2018Q4

High levels of delinquent and nonaccrual loans are often a sign of asset quality problems. Call Report Instructions state loans should be placed on nonaccrual status if they are over 90 days past due unless they are both well-secured and in the process of collection.