BAS Case Study - March 2023

Sunny State Bank

CAPITAL - OTHER RATIOS

Div. & Ret. E…

Dividends to Net Income

Retained Earnings to Average Total Equity

140.7%

6.0%

80.0% 100.0% 120.0% 140.0%

3.6%

4.0%

3.1%

(All)

1.7%

2.0%

2013Q4

0.5%

2014Q1

(0.7%)

0.0% 20.0% 40.0% 60.0%

0.0%

46.4% 60.3%

38.9%

2014Q2

(2.0%)

2014Q3

0.0%

(4.0%)

2014Q4

(4.8%)

2015Q1

(20.3%)

(20.0%)

(6.0%)

2013Q4 2014Q4 2015Q4 2016Q4 2017Q4 2018Q4 Equity Capital Growth Rate

2013Q4

2014Q4

2015Q4

2016Q4

2017Q4

2018Q4

2015Q2

Equity Growth Less Asset Growth

15.0%

12.0% 16.0%

10.0% 15.0% 20.0%

17.6%

13.5%

13.9%

9.1%

0.0% 4.0% 8.0%

5.9%

4.7%

7.1%

7.1%

3.0%

0.0% 5.0%

6.6%

2.4%

3.4%

1.5%

0.2%

1.8%

1.2% 0.9%

(4.7%)

1.5%

(2.4%)

(6.2%)

0.2%

(25.0%) (20.0%) (15.0%) (10.0%) (5.0%)

(8.1%)

(4.7%)

(16.0%) (12.0%) (8.0%) (4.0%)

(4.3%)

(6.8%)

(11.3%)

(6.2%)

(4.4%)

(10.2%) (10.9%)

(11.3%)

(8.3%)

(8.8%)

(7.3%)

(21.9%)

(12.7%)

(14.9%)

2013Q4

2014Q1

2014Q2

2014Q3

2014Q4

2015Q1

2015Q2

2015Q3

2015Q4

2016Q1

2016Q2

2016Q3

2016Q4

2017Q1

2017Q2

2017Q3

2017Q4

2018Q1

2018Q2

2018Q3

2018Q4

2013Q4

2014Q1

2014Q2

2014Q3

2014Q4

2015Q1

2015Q2

2015Q3

2015Q4

2016Q1

2016Q2

2016Q3

2016Q4

2017Q1

2017Q2

2017Q3

2017Q4

2018Q1

2018Q2

2018Q3

2018Q4

The ratios on this page relate to dividends, retained earnings, capital growth, and asset growth. Keep in mind that a high level of dividends could impact the ability to grow capital (net income - dividends = retained earnings). Also be mindful that asset growth will impact capital ratios since the denominator for capital ratios is assets (either average total assets or risk weighted assets). If Equity Growth Less Asset Growth is positive, capital ratios will likely improve and vice versa. ■ Bank ■ State ■ All Banks