Bank Analysis School - Case Study & Resources

LIQUIDITY - LIQUID ASSETS

Sunny State Bank

Total Liquid Assets to Total Assets

Primary Liquidity to Total Assets

44.0% 42.3%

12.0%

40.0%

10.0%

35.0%

36.0%

36.5%

8.0%

Metrics

32.0%

7.2%

6.5%

28.5%

Bank

6.3%

28.0%

State

6.0%

27.0%

26.1%

All Banks

24.0%

24.2%

4.0%

4.0%

20.0%

3.8%

3.5%

3.3%

20 X9 Q4 20 X0 Q4 20 X1 Q4 20 X2 Q4 20 X3 Q4 20 X4 Q4 20 X5 Q4 Total Liquid Assets to Total Assets Breakout

20 X9 Q4 20 X0 Q4 20 X1 Q4 20 X2Q4

20 X3 Q4 20 X4 Q4 20 X5 Q4

Primary Liquidity Breakout

45.0%

6M

40.0%

5M

35.0%

30.0%

4M

Metrics

Metrics

25.0%

Unpl. Sec

Sec < 1Yr

20.0%

3M

FFS

FFS

15.0%

IBB

IBB

2M

10.0%

Cash

Cash

5.0%

1M

20 X9 Q4

20 X0 Q4

20 X1 Q4

20 X2 Q4

20 X3 Q4

20 X4 Q4

20 X5 Q4

20 X9 Q4

20 X0 Q4

20 X1 Q4

20 X2 Q4

20 X3 Q4

20 X4 Q4

20 X5 Q4

• Total liquid assets include unpledged securities, Federal Funds sold, interest-bearing bank balances, and cash & due. Keep in mind that evaluating on-balance sheet liquidity requires nuance and additional analysis. For instance, small nonrated Municipal bonds are considered liquid for this calculation but might be difficult to sell or pledge. All loans are considered illiquid for this calculation, but certain types (such as government guaranteed and conforming 1-4 family loans) might be fairly liquid. • Primary Liquidity consists of Securities maturing in less than one year (both Bonds and MBS), Fed Funds Sold, Interest Bearing Balances and Cash, the idea being that these balance sheet funds are most readily available in time of need with limited cost.