BAS Case Study - March 2023

Sunny State Bank

EARNINGS - OVERALL PERFORMANCE RATIOS

Return on Average Assets Adj. Sub S

1.20%

(All)

1.00%

2013Q4

0.80%

2014Q1

0.60%

0.47%

0.46%

2014Q2

Metrics

0.37%

0.40%

Bank State All Banks

2014Q3

0.15%

0.20%

2014Q4

0.04%

0.00%

2015Q1

(0.20%)

2015Q2

(0.32%) 2017Q4

2015Q3

(0.40%)

2013Q4

2014Q4

2015Q4

2016Q4

2018Q4

2015Q4

Return on Equity

2016Q1

10.00%

2016Q2

8.00%

2016Q3

5.92%

5.75%

2016Q4

6.00%

4.20%

2017Q1

4.00%

2017Q2

1.65%

2.00%

0.50%

2017Q3

0.00%

2017Q4

(2.00%)

2018Q1

(4.00%)

2018Q2

2013Q4

2014Q4

2015Q4

2016Q4

2017Q4

2018Q4

• Return on Average Assets (ROAA) is calculated as net income divided by average assets. This ratio is a good starting point for analyzing earnings because it shows the overall return on a bank’s activities. • Return on Equity (ROE) is calculated as net income divided by equity capital. This ratio is also a measurement of overall earnings performance. It is more likely to be measured and referenced by bank management and shareholders than examiners.