Bank Analysis School - Case Study & Resources

LIQUIDITY - DEPOSITS

Sunny State Bank

Deposits Volume and Mix Over Time

$70M

$60M

Metrics

$50M

Foreign

$40M

TCDs

Savings

$30M

MMDA

$20M

NOW/ATS

DDA

$10M

2012 X9

20 X0 Q4

20 X1 Q4

20 X2Q4

20 X3 Q4

20 X4 Q4

20 X5 Q4

Deposits > 250k / Total Deposits

Deposits > 250k Less Public Funds / Total Deposits

21%

14%

14%

21%

20%

20%

13%

19%

12%

19%

12%

19%

12%

18%

11%

11%

11%

17%

17%

10%

17%

16%

9%

9%

15%

8%

7%

14%

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 X4Q4

20 X5 Q4

Understanding recent deposit growth and mix trends is important for assessing funding stability and identifying any shifts towards less stable deposit sources, such as large inflows into high-rate specials. Deposits over $250k may be uninsured and therefore pose a higher risk in times of financial stress. However, not all accounts over $250k are uninsured - joint accounts have higher FDIC insurance coverage and some banks purchase private deposit insurance to cover balances above FDIC-insured amounts. The chart subtracting public funds may provide a clearer picture of potential risks, since public funds are often large uninsured accounts but are typically secured by the bank's capital or pledged securities.