Bank Analysis School - Case Study & Resources

EARNINGS - ASSET YIELDS (Full Year/YTD)

Sunny State Bank

Dates

Yield on Loans

7.20%

6.88%

6.80%

(All)

6.40%

Metrics

6.00%

5.92%

Bank

5.60%

5.39%

5.39%

State

5.33%

5.52%

5.23%

All Banks

5.20%

4.80%

20 X9 Q4

20 X0 Q4

20 X1 Q4

20 X2Q4

20 X3Q4

20 X4 Q4

20 X5Q4

Yield on Securities

3.60%

3.57%

3.40%

3.23%

3.20%

3.17%

3.00%

2.74%

2.80%

2.60%

2.35%

2.46%

2.40%

2.24%

20 X9 Q4

20 X0 Q4

20 X1Q4

20 X2 Q4

20 X3Q4

20 X4 Q4

20 X5 Q4

Higher yielding loan and securities portfolios benefit the NIM but could be indicative of higher-risk (high risk = high expected return). Strong loan volume typically has a positive impact on the NIM, and vice versa, because loans are typically the highest-yielding asset category. A chart showing the Net Loans to Assets Ratio can be found in the Liquidity section of this report.