Bank Analysis School - Case Study & Resources

LIQUIDITY - KEY RATIOS

Sunny State Bank

Core Deposits to Total Assets (UBPR)

Net Loans to Deposits (UBPR)

83%

90%

82%

82%

82%

82%

85%

81%

80%

80%

80%

75%

79%

68%

79%

79%

70%

65% 65% 65%

78%

65%

63%

77%

60%

60%

76%

55%

53%

76%

20 X9 Q4 20 X0 Q4 20 X1 Q4 20 X2 Q4 20 X3 Q4 20 X4 Q4 20 X5 Q4 Core Deposits Excluding Listing Service to Total Assets

20 X9 Q4 20 X0 Q4 20 X1 Q4 20 X2 Q4 20 X3 Q4 20 X4 Q4 20 X5 Q4

Net Loans to Core Deposits Excluding Listing Service

76% 77% 78% 79% 80% 81% 82% 83%

60% 65% 70% 75% 80% 85% 90% 95%

82%

82%

82%

80%

79%

79%

69%

66% 66% 66%

65%

62%

76%

55%

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

■ State

■ Bank

■ All Banks

• The Core Deposits to Total Assets ratio provides insight into a bank's reliance on stable, low-cost funding sources. A higher ratio indicates a stronger liquidity position, as it reflects a greater proportion of assets being funded by core deposits. Refining this measurement to exclude listing service deposits provides a clearer view of the bank's reliance on truly core, stable deposits. • The Loans to Deposits Ratio is an essential measure of a bank’s liquidity and loan funding strategy. A high ratio suggests that the bank is utilizing a significant portion of its deposits to fund loans, which may indicate a tighter liquidity position. Refining the denominator to include only core deposits excluding listing service deposits provides further insight into the equilibrium between core deposits and loan volume.