Bank Analysis School - Case Study & Resources

EARNINGS - ASSET YIELDS (Quarterly)

Sunny State Bank

Dates

One Quarter Annualized Yield on Loans

5.60%

5.56%

20 X2 Q1 - 20 X5 Q4

5.49%

5.49%

5.44%

5.35%

5.40%

5.31%

5.41%

5.30%

5.29%

5.25% 5.24%

5.35%

5.29%

5.25%

5.20%

Metrics

5.18%

5.11%

Bank

5.00%

State

All Banks

4.80%

20 X2 Q1

20 X2 Q2

20 X2 Q3

20 X2 Q4

20 X3 Q1

20 X3 Q2

20 X3 Q3

20 X3 Q4

20 X4 Q1

20 X4 Q2

20 X4 Q3

20 X4 Q4

20 X5 Q1

20 X5 Q2

20 X5 Q3

20 X5 Q4

One Quarter Annualized Yield on Securities

3.40%

3.39%

3.20%

3.00%

2.93%

2.80%

2.63%

2.67%

2.58%

2.60%

2.52%

2.42%

2.40%

2.35% 2.33%

2.41%

2.40%

2.32%

2.20%

2.26%

2.22%

2.00%

2.03%

20 X2 Q1 20 X2 Q2 20 X2 Q3 20 X2 Q4 20 X3 Q1 20 X3 Q2 20 X3 Q3 20 X3 Q4 20 X4 Q1 20 X4 Q2 20 X4 Q3 20 X4 Q4 20 X5 Q1 20 X5 Q2 20 X5 Q3 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.