Bank Analysis School - Case Study & Resources

LOAN LOSS HISTORY

Sunny State Bank

Net Loan Losses/Average Loans

0.50%

0.50%

0.40%

0.32%

0.30%

Metrics

0.30%

Bank

State

0.20%

0.19%

0.18%

All Banks

0.10%

0.10%

0.02%

20 X9 Q4

20 X0 Q4

20 X1 Q4

20 X2 Q4

20 X3 Q4

20 X4 Q4

20 X5 Q4

Recoveries to Prior Credit Losses

450.0%

445.5%

400.0%

350.0%

300.0%

250.0%

200.0%

150.0%

100.0%

41.6%

50.0%

6.6%

6.7%

5.1%

4.1%

20 X9 Q4

20 X0 Q4

20 X1 Q4

20 X2 Q4

20 X3 Q4

20 X4 Q4

20 X5 Q4

• Net loan losses = gross loan losses - recoveries. Past loan losses are often a sign of poor underwriting and/or credit administration. The next page shows net loan losses for particular loan types.