Bank Analysis School April 2025

Internal Use Only

Basic Facts: • Babe Ruth has an unsecured $5,000 loan for personal expenses. • He is unable and unwilling to make any more payments on the debt. • The loan is currently 240 days past due. Loan Classification Decision #3 (Babe Ruth)

How would you classify this loan? (Zoom Poll)

25

Internal Use Only

Classification Amounts Feed into the Adversely Classified Items (ACI) Coverage Ratio

Sunny State Bank

Adverse classification / Tier 1 Capital and ALLL

26

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