Bank Analysis School Case Study eBook

Sunny State Bank

EARNINGS - ASSET YIELDS

Yield on Loans

7.20%

6.88%

(All)

6.80%

20X9Q2

6.40%

20X9Q3

Metrics

6.00%

20X9Q4

Bank State All Banks

5.92%

5.52%

5.60%

20X0Q1

5.39%

5.39%

5.33%

5.23%

20X0Q2

5.20%

20X0Q3

4.80%

20X0Q4

20X9Q4

20X0Q4

20X1Q4

20X2Q4

20X3Q4

20X4Q4

20X5Q4

20X1Q1

Yield on Securities

20X1Q2

3.60%

3.57%

20X1Q3

20X1Q4

3.40%

3.23%

20X2Q1

3.20%

20X2Q2

3.17%

3.00%

20X2Q3

20X2Q4

2.74%

2.80%

20X3Q1

2.60%

20X3Q2

2.46%

20X3Q3

2.35%

2.40%

2.24%

20X3Q4

20X9Q4

20X0Q4

20X1Q4

20X2Q4

20X3Q4

20X4Q4

20X5Q4

20X4Q1

Higher yielding loan and securities portfolios beneft the NIM but could be indicative of higher-risk (high risk = high expected return). Strong loan volume typically has a positive impact on the NIM, and vice versa, because loans are typically the highest-yielding asset category. A chart showing the Net Loans to Assets Ratio can be found in the Liquidity section of this report.