Bank Analysis School Case Study eBook

Sunny State Bank

CAPITAL - OTHER RATIOS

Div. & Ret. …

Dividends to Net Income

Retained Earnings to Average Total Equity

140.7%

6.0%

100.0% 120.0% 140.0%

3.6%

4.0%

3.1%

3.1%

(All)

1.7%

20.0% 40.0% 60.0% 80.0%

2.0%

20X9Q2

0.5%

46.4% 60.3%

44.6%

20X9Q3

38.9%

0.0%

(0.7%)

20X9Q4

(2.0%)

0.0%

20X0Q1

(20.0%) 0.0%

(4.0%)

20X0Q2

(20.3%)

(4.8%)

20X0Q3

(6.0%)

20X9Q4

20X0Q4

20X1Q4

20X2Q4

20X3Q4

20X4Q4

20X5Q4

20X0Q4

20X9Q4

20X0Q4

20X1Q4

20X2Q4

20X3Q4

20X4Q4

20X5Q4

Equity Capital Growth Rate

Equity Growth Less Asset Growth

15.0%

20.0%

15.0%

20.0%

13.5%

17.6%

13.9%

10.0%

9.1%

8.2%

10.0%

5.9%

7.1%

4.7%

7.1%

3.9%

3.0%

5.0%

2.4%

6.6%

3.4%

0.2%

0.8%

1.5%

1.8%

3.7%

(2.3%)

0.0%

0.0%

1.2% 0.9%

(4.7%)

1.5%

(1.0%)

(6.2%)

(6.7%)

0.2%

(2.4%)

(4.7%)

(5.0%)

(6.8%)

(10.0%)

(6.2%)

(7.3%)

(4.4%)

(8.8%)

(11.3%)

(10.2%)

(8.3%)

(11.3%)

(7.3%)

(10.0%)

(11.7%)

(20.0%)

(20.4%)

(21.9%)

(12.7%)

(14.9%)

(15.0%)

(26.3%)

(18.0%)

(20.0%)

(30.0%)

20X9Q2

20X9Q3

20X9Q4

20X0Q1

20X0Q2

20X0Q3

20X0Q4

20X1Q1

20X1Q2

20X1Q3

20X1Q4

20X2Q1

20X2Q2

20X2Q3

20X2Q4

20X3Q1

20X3Q2

20X3Q3

20X3Q4

20X4Q1

20X4Q2

20X4Q3

20X4Q4

20X5Q1

20X5Q2

20X5Q3

20X5Q4

20X9Q2

20X9Q3

20X9Q4

20X0Q1

20X0Q2

20X0Q3

20X0Q4

20X1Q1

20X1Q2

20X1Q3

20X1Q4

20X2Q1

20X2Q2

20X2Q3

20X2Q4

20X3Q1

20X3Q2

20X3Q3

20X3Q4

20X4Q1

20X4Q2

20X4Q3

20X4Q4

20X5Q1

20X5Q2

20X5Q3

20X5Q4

The ratios on this page relate to dividends, retained earnings, capital growth, and asset growth. Keep in mind that a high level of dividends could impact the ability to grow capital (net income - dividends = retained earnings). Also be mindful that asset growth will impact capital ratios since the denominator for capital ratios is assets (either average total assets or risk weighted assets). If Equity Growth Less Asset Growth is positive, capital ratios will likely improve and vice versa. ■ Bank ■ State ■ All Banks

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