Bank Analysis School Case Study eBook

Sunny State Bank

CAPITAL - TANGIBLE CAPITAL AND ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI)

Tangible Capital Calculations

$7.4M

$7M

$6.6M

Metrics

Tangible Capital Bottom Up Tangible Capital Top Down

$6.2M

$5.8M

20X9Q2

20X9Q3

20X9Q4

20X0Q1

20X0Q2

20X0Q3

20X0Q4

20X1Q1

20X1Q2

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Accumulated Other Comprehensive Income (AOCI)

$875,000

$800K

$400K

$139,000

$79,000

$0

($41,000)

($74,000)

($101,000)

$-400K

($469,000)

($693,000)

($712,000)

$-800K

($868,000)

20X9Q2

20X9Q4

20X0Q2

20X0Q4

20X1Q2

20X1Q4

20X2Q2

20X2Q4

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Tangible Capital Bottom-Up Calculation if AOCI opt-out election is 'Yes' = Tier 1 Capital (8274) + Accumulated Other Comprehensive Income (B530) + Mortgage Servicing Assets (3164) - Disallowed MSRs (LB59) Tangible Capital Bottom-Up Calculation if AOCI opt-out election is 'No' = Tier 1 Capital (8274) + Mortgage Servicing Assets (3164) - Disallowed MSRs (LB59) Tangible Capital Top-Down Calculation = Total Bank Equity Captial (3210) - Total Intangible Assets (2143) + Mortgage Servicing Assets (3164) - Disallowed MSRs (LB59) Accumulated Other Comprehensive Income: Report the accumulated balance of other comprehensive income as of the report date in accordance with ASC Subtopic 220-10, Comprehensive Income – Overall, net of applicable income taxes, if any. “Other comprehensive income” refers to revenues, expenses, gains, and losses that under U.S. generally accepted accounting principles are included in comprehensive income but excluded from net income.

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